Paying off our mortgage or not

[littlesoi]

DH and I stopped paying nursery fees and thought we'd be sorted for money.
Well then COL hit and we are about £700 a month worse off with our mortgage hike and every other bill going up. Our plan was to over pay our mortgage by £150 a month which reduces the amount by ten grand when we remortgage in four years but we are not exactly struggling each month but not enjoying life either.
We are both set to inherit at some point (my dad is very wealthy), but I feel very concerned that at 46 is still have a mortgage of £170k.
Do we suck it up and try to over pay? Can't cut any more costs or save for anything else. DH is younger and has an excellent pension so that's covered.
Live for now or be overly conscientious?

Generally, I always encourage people to overpay their mortgage if they can. It gives you choices in life and a wonderful sense of security.
But I wouldn't do it to the extent of never having holiday or treats.
There is generally a balance somewhere in between.

I wouldn't do financial planning around potential inheritance though - you never know how long someone will live and what care needs they will have had even if you totally believe you are the recipient in their will .

Considering your ages I'd enjoy life.

Split it. Half towards the mortgage and half into a fun fund. Then you won’t feel irresponsible but also won’t feel too hard done by for never being able to afford a treat.

No neither would I.. but I'm the sole recipient and we are talking a lot of assets, but then you never know what will happen I guess!

Do you have any savings? While I am very much in favour of overpaying mortgages, it shouldn't be at the expense of a buffer.

What's your current mortgage rate?

You can get easy access savings accounts paying 5% (often attached to current accounts). Barclays do one or YBS had an ISA which allows withdrawals. The MSE site will give you current options.

I'd be tempted to save £150 a month instead. If at some point you need to dip into it or reduce the amount, you can. If you can avoid doing this then you could pay a lump off before remortgaging.

There's no point leaving yourselves nothing. You won't get the time back to enjoy the kids while they are little.

If you’re expecting a large inheritance I probably wouldn’t over pay. Yeah you can’t guarantee it but sounds like it’s a large sum. I haven’t even started my mortgage yet and I’m 48 soon. I plan to take a 15yr one and I can pay it off at retirement anyway what’s remaining. Living in the south east until children complete education then heading north, hence not bought yet. I’d live for now, sort the mortgage later on once the rate drops just continue to pay the same and you’ll pay it off sooner

I wouldn't overpay if that means no swimming, no occasional coffee out etc.
I would overpay if it meant only one longhaul summer holiday, instead of 2, each year.
And there is a point somewhere between those 2 where the switch happens.

Overpaying whilst sacrificing too much isn't worth it.

Does your dad know you’re struggling?

My parents would want to help in this situation.

Over pay a little and see if you can up your earnings?

I don’t consider a mortgage of 170k excessive at your age. I would want to be enjoying life and having holidays, meals out etc - especially with a rich parent you expect to inherit from one day.

As long as you have a plan for getting the mortgage paid off by the time you retire, I wouldn’t be too concerned about paying it off as soon as possible. I know that there are financial benefits to early repayment but I also believe life is for living and it’s good for your emotional health to do things that make you happy. You are in a fortunate position that you can afford to.

170k mortgage at 46 is not a bad amount. Out of interest how much equity do you have? You also mention inheritance, how much approx would you expect to inherit? If it were me I’d keep the mortgage over payments sensible but depending on how much you think one day you will have focus on enjoying your 40s and 50s. Often when people are all secure financially they would give it up to be younger again

Can you not overpay it by a small amount and increase it every year? Then at least it’s getting an overpayment of sorts.

Our plan was to over pay our mortgage by £150 a month which reduces the amount by ten grand when we remortgage in four years but we are not exactly struggling each month but not enjoying life either.

Maybe look if overpaying less is worth doing. We've never over paid by that amount but amount we have managed has had a big effect.

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

I'd be aiming to overpay a bit and enjoy life a bit as well.