Overpaying a mortgage ?

[Jessie75]

I know this might sound absolute madness given Hello the rates are bought I’m allowed to over pay by 10% each year and my mortgage is buttons to be totally honest were talking absolutely tiny numbers here however the rates are 1.9 at the moment so I’m happy to just take a long saying that I have used up my ice allowance for this year so it’s not as though I can put the money into that which is a shame. I can put the full amount in next year though.

Am I right in saying that my pension is my best bet right now, I just need to sanity check this because I don’t have anybody else really to ask ?

A financial advisor might be your best bet.

Do you have other debts eg credit cards?

I'm not sure if you've ever been on the website forum Reddit, if not I'd highly recommend looking at the sub r/UKPersonalFinance as it has a flow chart which could help you answer the question depending on your priorities and current financial state. Some people prefer to invest money into pension rather than over pay the mortgage due to the current low interest rates. However that does not take into account the emotional side of being mortgage free. I'd have a look at the flow chart and follow it through, you might get a more personal for you answer than asking a broad question here.

@SuperLoudPoppingAction

A financial advisor might be your best bet.

Do you have other debts eg credit cards?

No no other debts just this money in a current account which seems bonkers, been there nearly a year now which isnt ideal.

@Badgertastic

I'm not sure if you've ever been on the website forum Reddit, if not I'd highly recommend looking at the sub r/UKPersonalFinance as it has a flow chart which could help you answer the question depending on your priorities and current financial state. Some people prefer to invest money into pension rather than over pay the mortgage due to the current low interest rates. However that does not take into account the emotional side of being mortgage free. I'd have a look at the flow chart and follow it through, you might get a more personal for you answer than asking a broad question here.

Thank you, thats great advice.

We've overpaid on the mortgage as we're essentially paying the bank 1.7% for it to be sat in our account and they're paying us 0.01% for it. It's not so much for now, but for when the fix comes to an end we'll be comfortably in the lower LTV bracket even if house prices move down. Our bank calculated we will save about £4k of interest per £10k paid off over the life of the mortgage and reduce our term by a year.

Partly it is emotional as I want to be mortgage free by 50, currently now it is due to be paid off when I'm 52 so nearly there 🤞