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    • YasmineA90
    • By YasmineA90 16th Jun 17, 1:42 PM
    • 27Posts
    • 11Thanks
    What's the best method to overpay?
    • #1
    • 16th Jun 17, 1:42 PM
    What's the best method to overpay? 16th Jun 17 at 1:42 PM
    I'm 7 months into a 25 year mortgage. £71800 left to pay, currently 7 months into my 2 year fix rate at 2.34%.
    I've been overpaying £50 a month making my payments approx £370 a month. I can probably afford more than this but just been wanting a nice chilled out life at the moment with my 1 year old. I'm now changing my mind and I'm now thinking I want to own the house asap to speed up my plans of progressing to buying more homes in future. (Potentially, I am probably a bit ambitious). I could probably afford another 200-300 overpayment if I budget and buy cheap food etc. (It's my own mortgage and I get about £1.5k-1.8k a month)
    Does it matter if I overpay in my two year fixed period or after and what's the best route to go down, one off payments or monthly?

    Thanks guys
Page 1
    • getmore4less
    • By getmore4less 16th Jun 17, 4:29 PM
    • 29,169 Posts
    • 17,449 Thanks
    • #2
    • 16th Jun 17, 4:29 PM
    • #2
    • 16th Jun 17, 4:29 PM
    If daily interest make the payment as soon as you are happy the cash is spare.
    • neverbrokensarah
    • By neverbrokensarah 20th Jun 17, 10:48 PM
    • 15 Posts
    • 3 Thanks
    • #3
    • 20th Jun 17, 10:48 PM
    • #3
    • 20th Jun 17, 10:48 PM
    A fixed rate will have a repayment penalty but usually you are able to overpay an amount either set per month or % of original mortgage amount annually. Find out what these allowances are for you and work with them so only overpay what you can without a fee and anything else you'd have wanted to overpay save in an account with more interest than your mortgage.
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