Pay off an extra 500 a month

ktownkid

Hi
I am on a 3 year fixed rate morgage due to end next year and I have some savings that I want to use to get the morgage down. We are paying 6% and getting lalot less than that in my Isa. I can pay up to £500 extra a month but if I pay more I will be charged.
Does the extra £500 come of the total amount (19years left) or off the rest of the 3yr fixed rate?
Had a letter come through and my morgage has gone down £2 since I payed the first £500.
Have approx 70k to pay

pixiepie99

Iy'll comeoff the total mortgage - i.e. the £70k. £2 a month reduction sounds about right.

dimbo61

If you can afford to overpay by £499/500 a month and have savings in ISA,s earning 2/2.5/3% then it makes sence to overpay.
In 12 months you will have cleared an extra £6,000 plus interest saved off the mortgage.
Hopefully you will be able to get a better deal next year if rates are still low and if you contine to overpay by £500 each month the mortgage will be repaid very quickly GOOD LUCK
I have overpaid my mortgage by £500 a month for the last 3 1/2 years and hope to be mortgage free within 10 years of taking out the debt( mortgage )

Berkshiregirl

http://www.whatmortgage.co.uk/calculators/fleximortgage.html

This link might help - it makes me cry how much interest I'd save by overpaying even a small amount each month!