Reduce term or lump sum?

Hi,

I have a mortgage of approx €340,000 to be re-paid over 32 years. I can now afford (I hope!) to take some money off this amount.

In general, in terms of reducing my overall interest bill would it be more cost effective to reduce my term - to say around 25 years - or to overpay my currently monthly re-payment and take money off the lump sum.

I have used a mortgage calculator that says I could save around €100,000 by reducing my term - will overpaying deliver the same level of savings?

Thanks for any advice you can give.

Busman100

Paying a lump sum off a loan but keeping the repayments at the original scheduled level will yield the best savings.

Many thanks for that Clubman.