MSE News: How mortgage overpayments this month can save £100s

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
edited 7 December 2012 at 5:25PM in Mortgages & endowments
"Borrowers with mortgages where the interest is calculated once a year could save by overpaying in the next few weeks..."
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How mortgage overpayments this month can save £100s

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Comments

  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    A link to your mortgage overpayment calculator would be handy in that article ;)
    No longer using this account for new posts from 2013
  • Gordon_the_Moron
    Gordon_the_Moron Posts: 1,472 Forumite
    First Anniversary Combo Breaker First Post
    If you've not moved your mortgage in years to have such a deal, I'd check you are on the best deal available!
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    Gemmzie wrote: »
    A link to your mortgage overpayment calculator would be handy in that article ;)

    here you go;)
    http://zerosum.freewebspace.com/
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    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
    portlandboy Posts: 297 Forumite
    First Post First Anniversary Combo Breaker
    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.
    Note to Self: When posting, remember to keep within "forum rules" to avoid upsetting other "interested parties"
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    portlandboy wrote: »
    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
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