If you're still on a low mortgage rate

[Curlewwoohoo]

Are you overpaying? Saving? Or just carrying on as normal? Just interested to see if people are taking any steps for when fixed rate ends.

We are on 1.5% until 2025. Overpaying by a few hundred and saving a couple of hundred in a high-ish interest rate account each month (with the aim of paying off a lump). Trying to get mortgage under £200k for when we move onto higher rate.

It is a bit of a challenge with cost of living though.

We still have 5.5 years left (fixed for 7 years). I haven't thought about it too much. The kids are young and we haven't got a lot of spare cash. Hoping for promotions and to increase working hours and a house move before having to remortgage.

We are on 1.3% until 2025. Putting spare cash into a high interest account makes more sense than overpaying now- can get about 5%- then pay a lump sum off when your current deal ends.

Yes same here. I'm on 1.39% for 2 more years. I'm overpaying a bit and have a little in a high interest account to pay a lump off at end of the term. Trying to save(/overpay as much as possible but it's not easy.

We are doing similar @DaisyDoor but I haven't done the maths to see which is most sensible...

We're saving hard in a 5% cash ISA for massive overpayment at the end of our 0.99% fix in 2027. It's possible we may have enough to be mortgage free if we really cut back.

We're currently paying £91pm in interest, if we go to SVR it would be £400pm.

Enjoying it while we can ha. Ours is due in 2025, I've stress tested and got a promotion to help plug the gap. We will readjust our finances in 2025 and put a little less in our pots. We have an extra holiday next year, so the extra saving we are doing for that now will be mortgage in 2025.

I'm on 1.65% for the next 3 years. I'm overpaying the small amount I'm allowed without being penalised - I think it's 4% per year of the outstanding balance. Then putting some money in an ISA.

My circumstances will be changing dramatically in a year and I won't be able to afford to do this so I need to thrown money at it now.

We are very fortunate to have fixed at 2.48% until 2032. At that point the balance will be so low that we can just pay it off if rates remain very high at that point. Not overpaying as savings rates are far higher than 2.48% and it would be a waste of money to overpay.

Seriously over pay now if you can! In January we went from 1.2% to 5.1%. It was brutal - and our mortgage is pretty small.

We're on 1.2% until 2026. Overpaying and saving elsewhere with the aim of paying off the balance before the rates go up.

Saving, fix ends at the end of next year. Complication is that likely to lose job in the next few weeks.

My husband may need to stop work due to ill health. I will need to move areas to get a new job that means I can support us both. As a result likely to move house when fix comes to an end.

What started out as saving to reduce the mortgage when the fix came to an end has given me more of a cushion to cope with this, so that is a big plus. It should be enough to mean we can survive until the end of next year and can then sell without having to pay an early repayment charge. I would then look to move to somewhere we could be mortgage free. However, I won't have enough to retrain which I think I need to do.

Am on 1.19 til 2027. Have savings so will hopefully use those to clear it then , depending on the rates.
I really like having the savings though.

We’ve got 2 more years. We also had the end of massive childcare costs a couple of years ago so we’ve been saving what we used to pay for that ready to pay off a chunk of the mortgage. And new mortgage will be a lot less than old mortgage + childcare.

It’s amazing what a difference it makes when the childcare costs end!

We're on 2.25 until 2027. Our mortgage is £2600 a month now. I reckon if we really try we can save 75k between now and then to overpay a lump sum. But it will still be likely unaffordable.

I think we're 2.44%, and fixed in for the next 4.5 years. We're just carrying on as normal at the moment. In 4.5 years, we'll no longer be paying out £1k a month on nursery fees so hope that we'd be in a position to afford a higher rate if that is still the case by then.

I'm on 1.58% until Jan 25. I'm saving as much as I can into high interest accounts and also overpaying a small amount each month. And just generally keeping fingers crossed! I work slightly less than full time at the moment so if it comes to it, I'll just put my hours up.

We’re on 1.09% for another three years and are saving like mad into high interest accounts that are locked away so that we can offset when we remortgage. Saving about £800 a month.

I'm on 1.44 until jan 25. I'm saving at an interest rate of 5% rather than overpaying. When it comes up for renewal I hope to pay a lump sum of £10-£20k off.

I have a spreadsheet of different rates / terms / overpayment levels so get an idea of what I'm facing in different scenarios.

I think on the saving v overpaying point. I don't entirely trust myself with savings so I'm splitting the payment between mortgage and savings. Once it's paid to the mortgage company it's gone.

Don't bother overpaying if you have a savings account with a higher interest rate than your mortgage. Save the amount you would be overpaying by and pay a lump sum at the end of your fix. This opportunity to save more than you pay in interest won't come again!

Have joint debts which will take about a year to pay off then intention will be to overpay. There always seems to be something that gets in the way of overpaying but think now is the time to prioritise. Once debts are cleared.

Not a lot of maths required.

You do have to factor in tax to be paid on interest from savings, unless the savings are something like ISAs, so the maths can be a bit challenging.

Sold my BTL, my home pre DH which I'd struggled to sell previously for a couple of reasons, in March (it was handy that the sale went through when it did as I could then max out two years of ISA allowance in a matter of a few weeks). This is building interest until our fixed rate mortgage ends in 2025. Plus we are saving hard (camping holidays only, and all major renovations on hold etc) in the hope that we will have enough to entirely clear there mortgage when it comes up for renewal.

We wouldn't have done things this way round if the interest rates had stayed low, the kitchen is over 30 years old and was, by the look of it, the budget line back then, and is now falling apart around us. The plan was always to use the sale of my BTL to renovate the kitchen and other projects, but yet again the kitchen is on hold (We've been here 8 years and it's needed doing since we arrived). But it seems silly not to try and get mortgage free now if it is at all possible.