We've just remortgaged and won't owe our first payment to the new bank until July, so we won't have a payment in June. This means we've got about £800 'free' next month.
We've (just!) finished our 6 month emergency fund and we save monthly for things like Christmas and clothes. We're on a very tight budget and aren't planning a holiday for at least a year-and that will probably be in this country. I'm 7 months pregnant and will be on maternity allowance from August to next April, then will start tutoring again. (MA is about the same as I earn anyway so we won't be any worse off.) Apart from the mortgage and DH's student loan we don't have any debt.
Would you, a) use it as an overpayment (allowed, no fees or anything would result from this) or b) save it as a separate little fund for stuff that might come up over the next year? DH had a car accident recently so I know our car insurance will be higher than normal in the Autumn and I'd be reluctant to take the extra out of our emergency fund as it's not really an emergency.
I feel like I am drawn to option a because I hate hate hate debt and am desperate to get the mortgage paid off as soon as humanly possible, but b is probably the more sensible option in the short term.