Lump sum off mortgage Vs high interest on savings

[Shakespeare]

Hi all
I was wondering if someone could help me run the maths on the following to make sure I make the best decision........

Mortgage Eur670k left 28years
% rate : tracker ECB +.75% so now 5%
Repayments approx Eur3,380 per month (getting max % relief of 333 per month but only until end of this year, thus even without Trichet hammering us more, the mortgage will be approx Eur3,660 by the end of the year)
Other major expenses are creche of Eur1,000 per mth and no2 due in Jan so looking at a further Eur1,000 per mth potentially and non -topped up maternity leave (god it's so scary just writing it down....)
Now I'm a saver by nature and we do have savings but with fixed outgoings approaching Eur6k per month over the next 6 months or so I'm trying to decide what's best to do as the opportunity to save going forward seems to be vanishing rapidly....
We have savings of Eur300k earning ECB+2.25% thus even after DIRT, the rate exceeds that on the mortgage but of course is calculated on a lower amount. the monthly net interest would cover one creche place but would negate the cumulative effect of the savings by withdrawing the interest.
The alternative is to put some of the savings against the mortgage to bring down the payments but could only put a max of Eur200k as need to fund maternity leave (of shorter than normal for these times - say 4-5mths max) and leave a balance as a rainy day fund as DH's job is contract work only, so subject to tricky times and fluctuating rates (rates currently less than being earned 2 years ago)
Has anyone any opinions on the best thing to do, I'm getting very stressed with the increase in the cost of everything except our salaries!!!

Thanks for bearing with me as I offloaded all that!
S

 

[ClubMan]

It's very difficult to read your post as formatted but I would suggest looking at Karl Jeacle's mortgage calculator when assessing the possible savings involved in accelerating the mortgage repayment.

 

[gm88]

You should fill out the template for the money make over section so people can see if there are areas where possible savings can be made.Personally i would keep the savings as they are if you can continue to get that level of interest.(by the way what bank is giving you this rate and how long is it guaranteed for ).Its nice to have that level of savings to fall back on if things do become difficult for you.

 

[Shakespeare]

Thanks Clubman and GM88
You're absoloutely right, It did come out as a bit of a brain dump and illegible to boot. I'll try to restructure it more clearly.
In answer to your question, the a/c is a money mkt account with FA, the rate is guaranteed at ECB+2.25% ad infinitum.

Rgds
S