When faced with repaying a mortgage people often wonder whether or not it is worthwhile over-paying by using their savings, especially just now, in view of the fact that, while bank interest is extremely low, mortgage costs have
not tumbled as much.
However, as with all things, particularly those of a financial nature, it pays to think before you act.
It is not, for example, merely a question of whether or not repaying your mortgage beats your current savings, but whether it beats the highest paying services available. Check this out before making a hasty decision.

Bear in mind that some lenders actually punish those who try to repay earlier than the agreed time span, especially if you are on a discount rate.
Again, it is important to assess your particular situation because it may well be that extra costs will outweigh the gains of over-paying the mortgage.
Right, then, so far so good. Now, ask yourself this: ‘Have I any other debts which should be cleared first?’
If you have credit cards and loans which need paying then see to it before looking to repay your mortgage as they will, in most cases, be more expensive.

Finally, will re-paying the mortgage take all the savings you have? If so, forget it. It always pays to hold something back for that rainy day – an emergency fund, if you like. Overpay most mortgages and your cash is gone.

So, if there is an emergency it’s back to the expensive credit card. And bear in mind that your early payment of your mortgage will not stop other lenders making an arrears charge if you happen to miss a monthly repayment with them.

It is also well worth checking to see if you can get a cheaper mortgage before deciding on your next early repayment move.