Women & Money Cafe - 118. Should I overpay my mortgage?

118. Should I overpay my mortgage?

02/12/24 • 24 min

We discuss the age-old dilemma of whether to overpay your mortgage or not.
- Debt management: Understanding the importance of addressing other debts before focusing on your mortgage.
- Establishing an emergency fund: The significance of having a financial cushion for unexpected expenses.
- Mortgage provider policies: Exploring the limitations and potential penalties for overpaying your mortgage.
- Calculating the interest rate differentials: Michelle walks through the math behind comparing mortgage interest rates and savings rates to determine the most effective use of your money.
- Setting up overpayments: Practical tips on setting up regular overpayments and the benefits of automation.
- Offset mortgages: Michelle explains the nuances of offset mortgages and the considerations when deciding on overpayments.
Resources:
- Debt Payoff Calculator
- Sprive app
- MSE website
YOUR HOST
Julie Flynn is an experienced independent financial adviser and financial coach. Justice and equality drive Julie. Which is why she’s spent years studying and researching how stress affects our financial decision making.

Julie is best known for her work with women who have lost their partner and coaching financial services business who want to implement fair and transparent charges.
Ebb & Flow Financial Coaching | Bree Wealth & Tax | Instagram
CO-HOSTS
Emily Pool is a Financial Planner and Will Writer. She is passionate about empowering people to invest their wealth (pensions and savings) sustainably and in line with their personal values.
Michelle Lambell started her career in financial services as a Stockbroker in 1999 undertaking both advisory and discretionary investment management. Today she is a Chartered Financial Planner, specialising in retirement planning advice, pensions and investments and a Certified Financial Coach.

Sara Walker is a financial planner and financial coach with 33 years’ experience in financial services. She wants all women to feel financially confident and uses her professional and life experiences to support and educate women over 40 so they in turn feel able to support and be role models for the younger women in their lives.
Jennifer O'Neil is a mortgage and protection specialist and director of Athena Mortgages. Having been in the industry since 2014 Jennifer decided to set up a company in 2020 that suited her core values as a broker – integrity, service, honesty and continuous improvement.
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YOUR HOST

Julie Flynn is an experienced independent financial adviser and financial coach. Justice and equality drive Julie. Which is why she’s spent years studying and researching how stress affects our financial decision making.

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Next Episode

119. Showdown: Mortgage Vs Pension

In this episode Julie, Michelle, and Emily engage in a spirited debate on the age-old question: Should you overpay your mortgage or put money into a pension? This showdown delves into the financial implications and personal preferences that go into making this crucial decision, leaving listeners with insightful perspectives to shape their own financial strategies.
- Decision-making considerations: Interest rates, investment returns, tax effects, and age
- Benefits of pension contributions: Tax relief, compounding growth, and access to funds
- Drawbacks of mortgage overpayment: Interest rates, lack of liquidity, and tax implications
- Split investment strategy: Allocating funds to both mortgage and pension for a balanced approach
- Lump sum decision: Factors influencing whether to invest in the mortgage or a pension

Resources:
Will overpaying my mortgage or pension make me richer? (ii.co.uk)
MSE overpayment calculator
YOUR HOST

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Women & Money Cafe - 118. Should I overpay my mortgage?

Transcript

Julie [00:00:26]:

Welcome back to this new episode of the Women and Money Cafe. Now today, we're going to do our best answer a question that we hear quite often, and that is it's a really simple question that people ask us is, should I be overpaying my mortgage? Right. And to put this into context, we're just going to talk you through all the things that you need to consider Before you actually go and pay off your mortgage in this episode from an overpayment point of view. Now for the pu