📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage overpayment Vs savings

I know the advice is to keep any extra cash in savings if interest rate is better and overpay at end of fix
However is this still true where mortgage value is high over a 30 year term?

I want to overpay £5k per year for next 5 years which is remainder of my fix.
If I overpay each year do I not save a greater value of interest over the full term Vs interest for just the next 5 years? 
Does such a calculator exist? 

Comments

  • 777birdy
    777birdy Posts: 7 Forumite
    First Anniversary First Post
    following this as wondering the same myself  
  • AliceBanned
    AliceBanned Posts: 3,166 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I also wondered about this. I’ve been overpaying for 2.5 years and my interest rate went up 1.5% on my fix in March. I’m just carrying on with small overpayment as before until I have an answer to this! Not sure whether previous gains from op are lost when you stop op if that makes sense! Especially when the rate has gone up.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.5K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.9K Spending & Discounts
  • 244.5K Work, Benefits & Business
  • 599.8K Mortgages, Homes & Bills
  • 177.2K Life & Family
  • 258.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.