Overpaying my mortgage

janninew

Hi
I just wanted some advice please about paying extra on my mortgage.
I have never paid extra on my mortgage and i wondered how you do this. Does it have to be a set amount each month? Or can i just pay when i can afford to? Also i'm on a fixed rate so i assume my monthly payments will stay the same if i start paying extra back? I will only be able to afford about 50.00 per month, so will it even be worth it?

Sorry if these questions seem a little stupid, i just have no idea how it
works!

Thanks

Joe_Bloggs

MSE Martin has an article here on this subject.
Name your lender / search your terms and conditions for what you can do.
J_B.

janninew

Joe_Bloggs wrote: »

MSE Martin has an article here on this subject.
Name your lender / search your terms and conditions for what you can do.
J_B.

Thanks for that - much appreciated!

benjo

Warning, making overpayments to your mortgage is addictive - when you see how much even small overpayments make in terms of shortening the period of your mortgage and saving you in interest paid - yes even £50 per month makes a difference, how much depends on the variables of your mortgage.

janninew

benjo wrote: »

Warning, making overpayments to your mortgage is addictive - when you see how much even small overpayments make in terms of shortening the period of your mortgage and saving you in interest paid - yes even £50 per month makes a difference, how much depends on the variables of your mortgage.

Thanks
Was rather hoping i can get addicted, much better to throw an extra 50.00 at my mortgage than buy lots of rubbish every month! :j

whitesatin

We have a mortgage with Alliance and Leicester. I knew we were allowed to make a one off overpayment in January each year but I only found out recently that we could also overpay up to £499 pm too. We have managed to do that for six months and it has made a good difference. I would always advise overpaying if you can, any amount will make a difference and, let's face it, the money will only be spent on something else if you are anything like me.

mclaren2005

I was on a fixed rate mortgage with the Nationwide Building Society and we could overpay £500 per month without incurring any penalties.

Gorgeous_George

The good news is that overpaying reduces the term of the mortgage.

The bad news is that by the time you are mortgage free, you could probably afford to keep paying.

By all means overpay, but don't forget to live a little. You never know what is around the corner. Everybody in the graveyard is mortgage free.

GG

getmore4less

Also look at the bigger picture, do a SOA and look for other areas you can cut back and save money.

http://www.makesenseofcards.co.uk/soacalc.html


make sure you have
Paid off any other higher cost debt
An emergency fund to cover unexpected expences.
A disaster fund to cover a loss of income(few months spends till you get another job)
Get full benifit from any pension contributions an employer might make.

Consider the ISA option this is tax free for life(for now) so can be better long term than paying off mortgage debt, especilay if you are ever likely to hit 40% tax.