Some advice please in paying of my mortgage early.

Hi,

I would really welcome some advice in reducing and hopefully paying of my mortgage early.

Below is my current situation:


I am currently into my 1st year of a 5 year fixed deal (1.89%) with Tesco bank.

My current mortgage balance is circa £205k.

I have at least £23k worth of savings which isn't really doing anything for me as it's just sitting in a Barclays ISA account earning pittance.

From my salary I can save at least £1500 per month if I stick to my budget.

I have current debts of around £3k all on a 0% interest free credit card.

Bank of mum and dad are offering to make an over payment towards my mortgage of 20% ( I can do this without incurring fees) of the balance this year circa £41k.

I was wondering if it's worth while putting this money my parents give me in a bank account with interest higher then my current mortgage rate.

In return I can set up a standing order of £500 a month on top of my regular monthly mortgage of £797 a month and once my fix year deal ends in approximately 3.5 years time then put the whole lot towards it including any further savings I would of saved up.

Is this a smart way of doing or shall I just pay the whole lot in now?