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andyfallsoff
rhowe
Anyone who is on a fixed rate mortgage and is in the luxurious position of making overpayments, be aware there's a good chance you can now get a fixed rate savings account with an interest rate that will exceed your mortgage rate:
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
Sure, investments might well do much better but if you're taking out a fix you presumably value certainty...
These probably don't factor in the recent 0.5% hike in the base rate either, so expect even better savings deals in the near future:
1y fix: 2.96%
2y fix: 3.31%
3y fix: 3.37%
5y fix: 3.5%
Also if you don't have a chunk of change sitting around to dump into a savings account but you do have spare cash each month you're chucking into the mortgage pit, you will probably be better off using a regular savings account instead:
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
5% with YBS (max £500/month), others are around 3.3-3.5%.
Note that we're talking marginal gains here - £500 a month at 5% is £161 of interest over a year, so even if it's twice as good as you'd do elsewhere it's only an £80 improvement. Plus, all these numbers are way lower than inflation so you're really just losing value more slowly than if you'd done nothing, although since your debt is also devaluing at inflation perhaps that is fine.
If you have made overpayments in the past, you might also be able to take a payment holiday and instead pay into a savings account which delivers a better return.