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BofE interest rate cut by 0.5% to all time low of 0.5%

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Comments

  • Anon
    Anon Posts: 14,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    kriss_boy wrote: »
    It doesnt make sense to over pay it while the rate is low...

    we are accumulating money easily so when the rates do start to go up back we can hand over lumps of cash.

    If you are not earning much interest on savings, it can make sense to overpay now as you can be making great progress in reducing the size of the loan for when the rates go back up - if you are on a variable rate, even keeping the payment the same as it was back in September/October before BoE started to fall will pay chunks off the loan. Also, many lenders limit how much you can overpay (if on certain deals) it is worth planning how much you can overpay.

    Anon
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