Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • bunsey
    • By bunsey 12th Jun 17, 11:17 PM
    • 8Posts
    • 2Thanks
    Overpay or put mortgage up?
    • #1
    • 12th Jun 17, 11:17 PM
    Overpay or put mortgage up? 12th Jun 17 at 11:17 PM
    Sorry if this is a silly question, not very clued up on mortgages! We have a new tracker which we can overpay as much as we like in to. We made a one off large overpayment last month and received a letter to say our mortgage had reduced by approx £100 a month from now on due to us having made an overpayment over a certain sum. Does it make any difference if we ask the mortgage company to put our mortgage back up to the original cost per month or make an overpayment each month for the £100 difference? I understand if we keep paying the original amount the term wold be reduced but will leaving it at the new lower amount but overpaying the difference monthly do the same job? Thanks
Page 1
    • glosoli
    • By glosoli 12th Jun 17, 11:48 PM
    • 633 Posts
    • 366 Thanks
    • #2
    • 12th Jun 17, 11:48 PM
    • #2
    • 12th Jun 17, 11:48 PM
    It will do the same job as any overpayment you make will go towards the capital balance of the mortgage, therefore whether you do this by an increased dd payment or by manual overpayments then its swings and roundabouts.
    • Wookey
    • By Wookey 13th Jun 17, 11:18 AM
    • 795 Posts
    • 398 Thanks
    • #3
    • 13th Jun 17, 11:18 AM
    • #3
    • 13th Jun 17, 11:18 AM
    You could also put that £100 pm (plus any other spare cash) into one of the 5% regular savers that are floating about and then when it's term runs out put the full amount accrued into another one off mortgage payment.

    Either way i would not want to be making largish payments and still have the original term of the mortgage hanging over me, so save up and make the larger overpayments with the view to wiping the mortgage out asap or maintain payments at the current rate + the £100.
    Norn Iron Club member No 353
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

80Posts Today

1,916Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion!

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties)

  • Follow Martin