Overpayment question

pstones578 · 24 March 2006 at 8:46AM

Am I right in saying that if I have any spare cash and my mortgage allows overpayments and drawbacks without penalty that I might as well allways overpay as much as poss and then draw it back whenever I need it as I would always be saving the max interest that way?

Joe_Bloggs · 24 March 2006 at 12:41PM

It all depends upon the interest rate you are paying for your mortgage versus the gain on investing your money elsewhere.
The term opportunity cost was often used in the dim and distant days of my education.
J_B.

tee_pee_2 · 26 March 2006 at 12:30AM

b4 you start over paying your curreny mort I think it wouls be wise to see an advisor or check MSE to make sure that your current deal is the best. There's little point throwing money at a poor product. I am with the cheshire and was going to start overpaying, mort is voer 20yrd 18 remaining.

went to see my financial advisor and he is changing me to Halifax for the same amount of money 16yrs ans is I want to seriously overpay ie £125 extra a month he can get it down to a 10 yr mort.

SO just check your mort first, so your money is working at it's best for you.

HTH

Overpayment question

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