Overpayments on mortgage

[shortsaint]

We are in the last year of paying off our mortgage. We are overpaying £125 a month and it will be paid off in 12 months' time (should be 2 years but I just worked this out that the debt will be gone by next April).

I just checked and we have £12,000 in our overpayments reserve. In 12 months' time will that come to us or just be taken away by the building society?

It is not an offset mortgage just a normal repayment mortgage with no penalties for paying off early. Thanks.

Hmm I'm no mortgage expert but I always thought a overpayment reserve was something you could withdraw at a later time depending on the terms of your provider but that it already shows as coming off the total balance 🤔 watching with intrest we have overpayment reserve too.

If its the same as mine (nationwide ) that money has been taken off the balance. If you withdraw it you then owe another 12 000.

It just gets taken away!

We have set ours deliberately to not pay off the mortgage on full, owe £500ish so we can use our overpayment reserve in case we need money for repairs etc whilst we build up a separate savings pot.

We've been overpaying our mortgage by about £450 pcm for over 5 years whilst interest rates were so low and now finally we will pay off our mortgage in May this year. It will be a huge, huge relief. It means if any of my adult children lost their jobs in a recession I could make mortgage payments for them until they got new jobs. I could not have done that if still paying my own mortgage. I'm so grateful we had many years of cheap interest rates and worry about youngest son just getting on to property ladder now in April.

Thank you.

Feels a bit depressing that there's all that and only one year less. Hey ho!