Should I overpay?

fc320

I’ve got just under 1 year left of a 1.9% mortgage with £347k remaining. We’ve had a loft conversion on the property to add an extra bedroom and bathroom as well as bought share of freehold (vs leasehold when I bought), so feel confident the property should increase in value since purchase and hopefully improve the loan to value rate when I remortgage.

Question is should I focus on overpaying this final year (as someone who isn’t very good as saving money!) to try and make a dent in the loan to value as much as possible to help remortgaging?

Thanks!

penners324

At that rate you'd be better off putting the money into a savings account that earns 4%+. Then use it when doing tbe remortgage.

WWe've used a Coventry building society limited access saver to do ours.

Woodstok2000

Depending on how much you can overpay without penalty, with a 1.9% rate on your mortgage and 4%+ available on savings you may well be better putting your overpayments into a savings account/isa and then looking again just before your deal runs out.

Jemma01

If you know you can't save money, def overpay your mortgage.

No point talking about how saving and paying a lumpsum is great, when it doesn't work for you.

Yorkie1

If you're not very disciplined about saving each month, perhaps set up a standing order from your main account to a savings account? That way, it can go out of your account before you really notice it?

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81941890#Comment_81941890

If you do this, I'd also suggest it goes to an account with a different institution to your main accounts so you don't "see" the savings when you log in.