should i over pay on my mortgage

baron777red

hi we have a mortgage with the coventry building society at the moment which is on a tracker 0.75% above base rate, (this product is portable and we can take it with us to buy our new house)

we used to pay £588.00 now were paying £358.00, and i was thinking of over paying to save on interest.

we have the house on the market at the moment for £100k and owe about 95K on the mortgage, we also have managed to save up 4K for when we move

if my mortgage company let me overpay, and i pay an extra 4k off it, how much am i likely to save by doing this?

belfastgirl23

How much £ or interest you save would depend on how long your house is on the market before you sell it, so it is a 'how long is a piece of string' type of a question

Personally in your shoes I'd save rather than overpay, that makes the money much more flexible for when you do move...

missile

a tracker 0.75% above base rate

you ought to be able to find a savings account paying a better return than that.

herbertthehelper

missile wrote: »

you ought to be able to find a savings account paying a better return than that.

Indeed... I would just put it in a higher savings or an ISA

shop-to-drop

You should save now it will make the extra part of your new mortgage less and this will no doubt be on a higher interest rate.

The only disadvantage is the temptation to spend but just as long as you are focussed enough on being able to move I'm sure you'll do it.