Should I overpay or save?

freesha

Edit: Not sure if this should be here or the mortgage-free wannabe board??

Hi all, interested to know what you would do if you were me.

Mortgage is £53400 left, current deal is 1.29% (£335pm) fixed until October 2026. There will be 14 years left in October.

I could probably overpay between £100pm and £200pm. Would this make sense, rather than saving it? I have an ISA with Monzo (currently 2.75%) and a savings account with my BS (currently 1.1%).

If relevant: single income, work FT, early 40s, teenage child. Not looking to ever move.

Thanks for any thoughts

El_Torro

I wouldn’t bother overpaying between now and October, you can easily do better than 1.29% in a Cash ISA or savings account.

What you should do in October will depend on the deal you get and what interest rates are available in savings accounts.

jimjames

Rather than saving in a 1% account get a decent account paying over 4% so you can actually earn more interest but definitely not worth overpaying at 1.29%

penners324

Open a different savings account, earning far more than what you, pay into that.

In October use that cash to reduce the mortgage balance

freesha

Thank you all.