The classic dilemma. The maths comes down to a guaranteed mortgage rate against an uncertain expected return. Both numbers, side by side.
£20,186 difference at year 20
Roughly a tie. The two paths produce similar wealth at term-end. Decide on temperament, certainty of a paid-off mortgage versus optionality of investments.
Illustrative figures only. The model assumes constant rates and returns; real-world UK fixed-rate mortgages roll off every few years. For your specific situation, consult a qualified adviser.
Worth coordinates debt payoff against investing across the household trajectory. The right call at each rate, the year the balance shifts. Join the waitlist.
Always max the employer match first. Free contribution beats both options. Only after every available match has been captured should you compare overpayment against tax-sheltered investing with the next spare cash.
The calculator assumes the current rate persists for the remaining term. In practice, UK fixed rates roll off every two to five years. If rates rise sharply, overpaying becomes more attractive; if they fall, less so. The longer the fix, the more you can rely on this calculation.
Most UK fixed-rate mortgages allow around ten per cent overpayment per year without penalty. Above that, expect early repayment charges of one to five per cent. Check your specific product terms before committing to large overpayments.
Some people sleep better with a paid-off mortgage even if the maths slightly favours investing. That peace of mind has real value. Just do not pretend it is free; you are paying for it in expected return. The calculator gives you the number; you decide what to do with it.