Offset or overpay?

Thefunkygibbons

I can see why this question comes up a lot

It does depend on circumstances, but my decision making process is
1. Are all the debts that can be paid off, cleared?
2. Do you have say 6 months of household outgoings tucked away in an high interest account, preferably a cash mini ISA
3. How good are you at leaving money alone? If so, offset can work, but if money burns a hole in your pocket, pay it off the mortgage before you even start spending for the month
4. Make sure that your mortgage product allows over-payments and that interest is calculated daily so that you get the benefits of the over-payment
5. Try to maintain a high monthly repayment regardless of the declining mortgage balance

I am not a fan of offset as the interest rates are higher than normal. However, for some people, they do work

skintchick

Overpayment it is. From now on, inspired by you, Mr Gibbons, I shall be aiming to get rid of my mortgage with any and all spare cash I can muster.

Much obliged for your help.