Overpayment motivation?

LK12

I've been lurking on a few threads but generally just struggling myself at this point.
I've got a mortgage of around 120k on my house, the interest went up drastically this year to 5.54% and seeing the interest amount every month on the statement is really discouraging.
My monthly payments are hardly paying down any capital at all with the interest so high. (£630 with £550 interest)

I'd started overpaying 200-400 each month but the amount seems to make such little difference I feel like giving up and just piling my money into my savings.
Would I be better off saving on the side and then overpaying in lump sums to feel like I'm making more of an impact? 
I know every OP makes a difference no matter how small but it feels like that extra cash is going into a black hole. 
For info, I've got 37 years left on the mortgage so this is something I'm really interested in, I have no other debt/finance but I do have some savings & an emergency fund...

pramsay13

Can you get savings of more than 5.54% ?

Flossymuldoo

Don’t forget that everything you overpay will go straight off the balance as the interest is already paid.

MFWannabe

Have you put your numbers into the overpayment calculator?  That will show you the difference the overpayments will make and there’s an option to compare  it to savings 

I would say unless you can get better interest rate on savings then overpaying mortgage monthly would be better 

MFWannabe

As you can see from the calculator overpaying £200 a month will make a massive difference. It’s the first few years you don’t see a great difference but as your capital becomes less you’ll see a greater difference