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Just a quick question..........
swampduck
Posts: 962 Forumite
Our mortgage company has switched our mortgage to interest only and fixed the sum that we pay monthly which has been a great help in these difficult times. But I have always paid more than the minimum payment required usually by around fifty pounds on the assumption that this would be paid towards the principal sum borrowed and have done so for 6 months or so and had intended to carry on doing so. But OH reckons that the extra we are paying is not going towards the sum outstanding and will be lost.
Am I right to do this or should I be saving this to pay off as a lump at a later date?
We have 11 years to go on a 15 year mortgage term. In my mind I'd rather pay extra to the mortgage than to debts because neither of us is getting any younger and hopefully this arrangement is only a short term thing anyway. Added to which I know if we were to try and save it would get eaten up somewhere else.
Swampy
Am I right to do this or should I be saving this to pay off as a lump at a later date?
We have 11 years to go on a 15 year mortgage term. In my mind I'd rather pay extra to the mortgage than to debts because neither of us is getting any younger and hopefully this arrangement is only a short term thing anyway. Added to which I know if we were to try and save it would get eaten up somewhere else.
Swampy
Expect the worst, hope for the best, and take what comes!!:o
0
Comments
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Check with your lender regarding what happens to the overpayment.
What should happen is the the principal amount should reduce when you make these overpayments.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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