Overpaying mortgage

[Onemoret1me]

I appreciate we’re in a very fortunate position but we aren’t very clued up when it comes to money and mortgages.

We over pay our mortgage every month which will allow us to pay a 21 year mortgage off in 10-11 years.

if we continue with the current over payments we have 7.5 years left to pay now

If we really cut back on luxuries and any other saving we could over pay more and have it paid off in 4 years instead. DH is fixed on doing this however I feel we’d be silly not to try and build up savings/an emergency fund.
I don’t think the 10% overpayment limit makes a difference as we’d remortgage for lower amount when our fixed rate expires in a year so anything over the 10% would be saved and paid off in a lump sum on remortgaging (I think)

we don’t have much in terms of savings, maybe 10k.

what would you do? Continue with current over payments and pay off in 7.5 years or really cut back for 4 years and get it paid off quickly?

Personally, I'd prefer 7.5 years and have a bit of a life. We are doing something similar but have kept the overpayments at a reasonable rate so we can go on holiday, have a take away once a week and days out.

That’s my thinking, stick with 7.5 years and have a bit of a life. Husband is a little older and in a very physical job so really wants to get the mortgage paid off and then feels he can relax a little.

I was going to say 7.5 years, but given your update about your DH I can understand why he wants to push for the mortgage. How much of a 'cut back' to pay off in 4 years are you talking? - can you still afford a holiday, meals out etc?

I would be happy to push for 4 years, but not if that means you are watching every penny. There's something to be said for living for today!

I would keep the overpayments at the 7.5 years target and put the payments that would allow the 4 year target in a separate account every 3-6 months decide how much of that to overpay.
It gives you that back up if you need some of it and the occasional luxury whilst also having the option of paying back quickly although maybe more like 5-6 years.

When we were overpaying our mortgage we had a regular monthly overpayment and then reviewed our finances every 3-6 months and decided what was best to do to with it. There were times when we put that money to a semi new kitchen or a new bathroom which we saw as investing in the house and other times we put the chunk off the mortgage.

We currently aren't overpaying as our rate is lower than savings but we have it to one side to overpay when we are ready to remortgage.

When you are looking for a new mortgage consider first direct as they have unlimited overpayments

What’s you/ your dh’s plan when you’ve paid it off? Will you obsessively save the same. Or will you start living? I would say it’s better to sanitary some savings now. Especially getting into a S&S isa to benefit from compound interest will make more money than paying off your mortgage.