Overpay your mortgage or save? What to do with £20,000

Some 1.6 million homeowners will come to the end of their fixed mortgage deals this year and face a sharp jump in repayments.

Most borrowers who fixed deals five, three or even two years ago will be coming off rates of less than 2.5 per cent in a very different mortgage market — the lowest fixed rates are now at about 4.5 per cent. Last year many homeowners took the chance to make overpayments while they were still on cheap deals, with the aim of cushioning the blow when they remortgage, but the numbers doing this has now tailed off.

More than £2 billion was overpaid on mortgages every month between September 2022 and September 2023, according to the Bank of England. By February this