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Overpayments
Mortgagehelp_3
Posts: 5 Forumite
If you can only overpay 10% a year, is it better to pay a slump sum now or pay monthly? Can't see the downside to paying monthly and getting the a little interest?
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Comments
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If your mortgage interest rate is higher than your savings interest it makes sense to overpay in a lump sum. That is, if the interest on your mortgage is daily.0
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If you have the lump sum available and are allowed to pay off 10% in one go then, pay off the 10% in one go.Mortgagehelp wrote: »If you can only overpay 10% a year, is it better to pay a slump sum now or pay monthly? Can't see the downside to paying monthly and getting the a little interest?
You will benefit from the reduction in cost immediately rather than it gradually over the year. This is all dependent on you being allowed to repay 10% in one go.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0
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