How much would you want in savings before overpaying mortgage

[boymum36]

We would like to upgrade our house in 4-5 years and in this time will hopefully go on a few holidays. We currently have 15k in savings and save 1k a month. At what point would you start overpaying the mortgage by the 1k instead of putting into savings. We obviously still need to save for holidays so not sure whether to do 1 month savings/1 month mortgage?

Whar are your monthly outgoings? I think it would depend on that. They say you should have enough savings to keep you going for at least three months if you lost your job.

They are about 3k so have a few months worth

I would start now. Is your mortgage rate higher % than your savings rate?
Also see if you can work out if you drop a LTV band, so you can get a better mortgage rate.
The Martin Lewis website has good overpayment calculators to use.

I'd want 6 months emergency savings. Also, it depends on your mortgage rate - currently we're not overpaying as our rate is lower than we can get in savings.

Why is it all or nothing? £500 to reduce mortgage and £500 to savings. Or 750:250.

This - what's your mortgage rate? Ours is under 2% so not even considering overpaying right now

By "upgrade your house" do you mean move or extend/renovate? How are you planning to find this - direct from savings or remortgage? If there are likely to be any obstacles to remortgaging, better to have the savings liquid. If the intest rate on the current mortgage is lower than savings rates anyway, also better to keep it in savings (as several other posters have said).

Start now. But do not amend your mortgage terms, just increase the standing order by an amount that you can afford and is within the allowable overpayments. That way it remains something you can turn off if you need to.

I have the same £1k pm left over and I do 50 (hols): 25(savings):25(mortgage)

This is because I am on a super low rate on my mortgage with another 5yrs to go so no point putting too much into overpaying.

4 months salary

I'd want 3 months of salary / 6 months frugal living expenses saved.
Then I'd probably be increasing pension contributions so you're on track for comfortable (maybe early) retirement.
Then I'd overpay mortgage.

Just personally! Also depends if you have kids you want to help with house deposits/ weddings/ university etc and other goals

I'm crap at savings so overpay my mortgage now. I have 2 months worth of living costs in savings, over pay my mortgage by £350 a month, save about £150 and also go on holidays. I like to spread my extra money.