I have just over £3000 in an isa and someone had advised that a better use of the money would be to pay off £3000 of my mortgage. I spoke to my mortgage advisor (skipton) and they said overpaying by that amount would bring my monthly amount down by £10 a month and there is no penalty if I overpay before the end of my period. I am a little bit sceptical about doing this as I think I would earn more than £120 interest on my £3000 in a year, is there any other benefits of overpaying I have overlooked?
Pretty good answers so far! I have decided that I WILL overpay my mortgage, the only question is wether I keep the same monthly rate or use the £3000 to reduce it by £10 a month. Any thoughts people?

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I believe you will be better off paying in mortgage. As per your question you will save £10 month. Lets Calculate £10(@month) x 12 = £120 per year. £120 (@year) x 10 ( assuming 10 year mortgage) = £1200. Even interest rate goes up or down still worth paying off. I reccommnd that if possible do overpayment. Even if you do £5 overpayment will reduce your interest on loan will reduce. You will be not able to see this difference immediately but sit down and check interest charged on statement you will notice difference in long term. Also you will be able reduce your mortgage term. Even if your mortage term reduce by 1 year than you can count how much money saved at present instalments.

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