to pay or not to pay??

The_Bhoy_2

hi!! only joined 30 seconds ago... i would like some advice

i have a 25 year 72k mortgage, i am 5 months into it, already i want to start paying more, there is a 5% charge for doing this.

let me give you a rough estimate of what i got going on

income £1700 pcm
outgoings £1200 pcm
Savings to date £1000 (not in isa)
can potentially top up with £300 per month, £200 for emergencies

i guess the question i am really asking is, should i put the £300 pcm into the mortgage early, or stick it in a savings account and put it all in in 1 go at the end?

any help greatly appreciated

cheers

The Bhoy

chiefgoobster

You lucky thing with a £72k mortgage ! If only mine was that !!

I think you would have to look at the small print of your mortgage T's & C's
and see what it says about overpaying.Some may say you can make a certain amount of payments throughout the year and others in one lump sum at the end.

If it's at the end, do yourself a favour, whack it in a savings account and
earn yourself a few sheckles at least !

There maybe someone around this forum with some more info. Maybe ring your mortgage company ?

good luck whatever u do.

Joe_Bloggs

@The Bhoy
You can't really expect anyone to give you a rough estimate based upon nothing. You do not mention your mortgage rate. This is clearly is pivotal in making any decision as to making an overpayment decision. Alternative uses of you money are also worthy of your consideration.
Consult your mortgage terms and conditions to get the full picture.
J_B.

dimbo61

You should have 3/6 months of income in savings ( cash ISA,s ) before overpaying the mortgage.£5,000/£10,000
What is the 5% charge for overpaying all about ?