quick question: pay off more now or wait

snuffy

Hello, i know this is a busy forum so will keep it quick.

I have some extra funds to pay off £200 a month off of my mortage every month. I'm currently stuck at 5.34% until July. Shall I start paying it off now or pay more off in July (i.e. the usual amount I pay now plus £200) when I go down to the SVR? is there any benefit from doing this?

Thanks

Robert_Sterling_3

Pay it off while the rate id High.................

beecher

Overpay now - just make sure that there are no penalties for doing so. And then in July overpay by the £200 plus any savings you make from going onto the SVR.

snuffy

thanks I just wasn't sure how much a dent £200 would make between now and July and how much it will reduce it by in July, because of the difference in IR percentages - for example 200 quid is worth £150 now but £290 in July...

Thanks again

blued

If you pay it towards the capital then your interest will be reduced from now because you have less capital (albiet a small amount less) than you did to start with. This is why when you look at your mortgage statement you seem to pay nothing off for the first couple of years!

snuffy

I don't know if I'm honest with you, it just comes off the statement?