Is there any reason I shouldn't make overpayments on my mortgage?

[BrightestAndBest]

I recently got a pay rise. DH and I have savings equivalent to approx 5 months of our combined income. I'm thinking of using the extra money to make overpayments on our mortgage. Does this sound sensible?

The money saving expert has lots of info on this. We have spent the weekend trying to decide this our selves after receiving a an inheritance which means we don't have to sorry about savings. Today we decided over payments are for us. You have to check you can reduce the term, fines etc.

*to worry not sorry

I personally think it's a good idea. You can save thousands if you repay early.

There may be a limited to pay off in any one year with no penalty.

I'd keep three months worth of income and use the rest for the mortgage.

We can pay up to 10% of the mortgage off in any given year without penalty. I'm looking to keep our savings intact and pay an extra £150 per month from my increased earnings.

pay off as early as you can - reduce the profit the bank take from you

What might the disadvantages be?

As far as I know you can often take a payment holiday if you have made loads of overpayments and you get in dire straights.

We used to overpay to the Max too then we had kids

Do you have any other debts costing you a higher interest rate than your mortgage? If so, pay those off first. Also check that there are no penalties for early repayment.

The mortgage is our only debt. I'd like to reduce the term if at all possible (currently 28 years), otherwise I'll be paying a mortgage for the rest of my working life.

pay as much as you can, as early as you can, without penalties

I overpaid for a couple of years and then had a massive unexpected expense. The mortgage allows me to draw down on that overpayment with 7 days notice. Win win. Well...almost win... I'm now overpaying again from scratch.

For me it gives me flex in my budget in a monthly basis and I know I have the security of a sum of money in a crisis. The discipline of overpaying means I can withstand an interest increase

One of the benefits is the great feeling of freedom you will have when you finally pay it off. It is impossible to describe how good it will make you feel.

Did you decide?
We just made our first over payment. Its very exciting!