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    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @honoluluwindow I posted a reply with calculations earlier, but its just occurred to me that the simple flaw is what the calculator is assuming. It says "The interest saved is £31,559 vs earned in savings of £30,951 resulting in a net £608 gain for overpaying." But the interest saved comes...
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    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @sinead No, your equity doesn't give you any extra benefit when values increase. Imagine a £100k house secured with a £90k mortgage and £10k equity. The owner has £15k in the bank. If house prices increase by 20%, the the owner has £30k equity plus £15k in the bank, total net worth is £45k...
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    "X% of the time you make money investing in Y over Z time period"

    @ericastewart Its not just you. Anyone trying to justify investing even in a diverse global tracker as a zero risk method of making money should be ignored IMO. They probably have their own motives, and that motive isn't the listener's financial success. I don't think we should be taking...
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    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @honoluluwindow The interest saving on the MSE calculator is a purely notional number because it is calculating the interest that would be paid over the full 25 year term, which is obviously something you should know, but that number can not be used in comparison to what interest you earn on the...
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