MSE News: How mortgage overpayments this month ca...

[MSE Helen]

"Borrowers with mortgages where the interest is calculated once a year could save by overpaying in the next few weeks..."

Read the full story:

How mortgage overpayments this month can save £100s

[Gemmzie]

A link to your mortgage overpayment calculator would be handy in that article

[Gordon the Moron]

If you've not moved your mortgage in years to have such a deal, I'd check you are on the best deal available!

[Zero Sum]

Originally Posted by Gemmzie

A link to your mortgage overpayment calculator would be handy in that article

here you go
http://zerosum.freewebspace.com/

[Pincher]

This is not an issue with Interest Only mortgage

With a Repayment Mortgage, you are paying interest on principal you have already paid back in the earlier months of the year. Not significant in the early years, but in the last five years it can be very one sided in favour of the lender.

[portlandboy]

Generally I think that overpaying a mortgage is a good thing, but there can be a down side to it as well.
A few years back we had a mortgage with the Abbey. I became ill and stopped working for a while. The DSS started to help by paying the interest on our mortgage every month but we still managed to pay the full monthly amount, creating an overpayment. Once I was back to work I applied for a Barclay's credit card and got refused because of a credit check. After countless questions to the building society, the bank and the credit reference company it turned out that mortgage overpayments are logged in the same way as underpayments with so called "expert" credit reference companies. This was deemed a negative score for 20 months after we stopped making the overpayments, even though I added a note of explanation to my credit report.

[Zero Sum]

Originally Posted by portlandboy

Generally I think that overpaying a mortgage is a good thing, but there can be a down side to it as well.
A few years back we had a mortgage with the Abbey. I became ill and stopped working for a while. The DSS started to help by paying the interest on our mortgage every month but we still managed to pay the full monthly amount, creating an overpayment. Once I was back to work I applied for a Barclay's credit card and got refused because of a credit check. After countless questions to the building society, the bank and the credit reference company it turned out that mortgage overpayments are logged in the same way as underpayments with so called "expert" credit reference companies. This was deemed a negative score for 20 months after we stopped making the overpayments, even though I added a note of explanation to my credit report.

I had problems getting decent credit cards after I paid mine off