Should I still be putting money in a savings account?
If you decide to overpay on your mortgage, it can still be a good idea to keep back some savings to cover any unexpected ‘rainy day’ emergency costs, as you may not be able to request the money back from your mortgage once you’ve overpaid.
It’s also worth finding out if your interest on your mortgage is calculated monthly, quarterly or annually, to maximise the benefit of overpaying. If your interest is not due to be calculated for a few months to a year, you could put your money into a high interest savings account before using it to overpay on your mortgage.
Your mortgage provider will be able to tell you about any penalties for overpaying.