Over paying mortgage or investing?

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Hi guys just wanted some advice on overpaying my mortgage every month. I’ve currently got a 5 year fix mortgage at 1.44% (this was over a year ago I took this out). I am weighing up my options and would I be better off in terms of growth putting my money into index funds or to continue over paying over the 5 years? 

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  • WuLiao
    WuLiao Posts: 22 Forumite
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    MSE's overpayment calculator would be a good start: https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

    Two years ago, when cash returns were nil, the best option was overpayments. Now when cash returns are 3 - 4%, then stuffing the overpayment money into a cash ISA may be more profitable. Index funds over a short horizon like 5 years do come with the risk that you'll actually lose money. YMMV and all that.
    学然后知不足,教然后知困。知不足,然后能自反也 - 礼记
  • Bexm
    Bexm Posts: 455 Forumite
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    So as interest rates are higher than the mortgage rate.. Same as ours.. Would it make sense to put our over payments into a savings account and then pay the lump off with interest earned at the end of the year? 
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