Overpay on mortage or save?

acm90

Background: 

My husband and I have a £91,000 on our mortage, this is fixed until October 2026 at an amazing 1.97%  - We took this out as a 35yr mortage and now have 29years left. Our standard payment is £353 although we always tend to pay £450 and currently have £600 overpyament. 

We also have another two mortages running alongside this which we took out to cover work on the house: 
£22,600 @ 2.74% until 2031
£6,600 @ 2.74 % until 2031


In regards to our main mortage - I know that in two years time we won't have an amazing 1.97% deal. So my question is do I bump up our payments to £600pm (approx £250 extra) OR should I put this money away in a savings account to earn intertest - and then I assume i would use it to pay a lump sum off before October 2026 

Overpayment allowance is 10% per annum of the orginal loan amount which was £115K 

We won't be moving in future. 

Brie

how much do you have to pay on each of these and how much ££ spare do you have?

my inclination would be to get rid of the smallest loan just so you've more flexibility and then tackle the main mortgage.  but with interest rates on savings around 5% you are right to consider tucking it away to clear things in a couple of years. 

Altior

The real terms value of your mortgages are eroding in true value anyway. That is to say, inflation is significantly higher than your rate. There is absolutely no value in my opinion therefore to even consider overpaying whilst that remains the case. 

While interest rates are relatively high in the cash savings market, you could still play it ultra safe and create a cash bond ladder, ideally in an ISA wrapper. 

Richard1212

Save money every month in the form that suits you best---5.2 % for Easy Access accounts at present---or ISA or fixed accounts at the best available rate.

See how things are when your big ( wonderful) mortgage deal expires.