Mortgage Overpayment Advice

[v64motion]

Situation:
Have just under 12 years left on our mortgage (circa £80k left) and overpaying £150 per month. We are on a rate of 5.39% which is fixed till Jan 2014. After this the rate drops to 2% above BoE base rate.

We have some (£8k) savings, no pensions and have not other debt apart from the mortgage.

We don't have or intend on procreating the species so not too concerned about leaving anything behind when we both pop our clogs.

We reason for overpaying/clearing the mortgage is to:
a: get rid of that cost every month
b: the opportunity to work less (part time), or go into another line of work
c: lack of job security in this day and age and experience of loosing everything (family) once before

We are setting aside money for holidays, etc every month and so the plan was to pay off an additional £4k a year.

Have considered setting up an offset mortgage so this effectively becomes our pension pot but we are both (currently) happy to keeping on working for as long as we are able to.

Thoughts and opinions please?

[Sir Bagalot]

swerni said:

It's great overpaying the mortgage, but you don't have easy access to those funds.

Really? I overpay and I know all I have to do is call mortgage company up and request any/all of overpayment back and will have a cheque within days

[v64motion]

Our lender doesn't let you have the op's back, hopefully it won't be too much of an issue as we have an ok amount of savings relative to our outgoings.

We are going to crack on with the additional op until the end of the fixed rate and then see where we are. If nothing else we are saving on the mortgage interest and reducing the debt.

Thanks