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@lidarenee This was just the example I used on the calculator to test how much of a differential in interest rates would still show overpaying as better off to highlight the calculator was broken. Rates for savings are rising so not entirely unachievable either.

@newcreation17 I know, that was my understanding. As I say the comments on UKPF I’ve read recently contradicted this thought which is why I was bemused at the MSE calculator going against what people were saying. I also read the comments and thought, yes, they make sense.

@sinead This is a good point although it is difficult to input this in a calculator. We also have the issue of this point only being valid when you sell to realise the additional value ie it’s an unrealised/paper gain.

@filu63 This seems to illustrate well that in the example I’ve provided, of course the higher savings rate will indeed be better off than overpaying. Column D difference should ideally describe that it’s the normal mortgage vs overpayment difference. Also not sure what E38 Interest earned is...

@sophia89 Hmm that’s interesting, can you post the exact amounts you put in for mortgage value etc too, I’m trying to figure out what their calculator is doing wrong.

@rnblessings I think this could explain though I think it’s better to compare to the lower mortgage term which is essentially one of the main benefits along with interest savings from overpaying. If we were to compare to the 25 years, the mortgage balance would stop at £0 and the savings would...

@podpkid I think they have to be honest, you are absolutely right about the tax on savings just that I’d not ticked that option purposefully as the calculator says that. It’s also one where you may not pay tax early on but as the balance increases on your savings account, you certainly will and...

@podpkid Don’t think this is the case, they give you the option to apply various tax rates if you want, I selected None.

@resjudicata This answer suggests the MSE calculator is wrong which I think it is

@bowwoooxd This makes sense and seems to explain the issue, I have emailed them just now so will report back what they say.

I have read many a comment over the last few days that have made me question the overpay v save debate. My understanding was that the overpayments are affecting interest on a larger debt balance whereas the savings compound from a smaller balance hence it is better to overpay. I input an...