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85%LTV (depending on valuation)
Comments
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Unless you fix for say a 5 year period. A short term fix is unlikely to be of any significant financial benefit.
Always remember that interest is calculated on the capital balance outstanding. So as the capital balance reduces so does the impact of interest rate changes. This is a medium term view not short term. Only worth considering if the repayments are affordable even if rates were to jump upwards suddenly. I would caution against this course of action if budgeting for cash outgoing is more important.
The majority of lenders now calculate interest on a daily basis, charged monthly. So the impact of overpaying is immediate.0 -
Wow thanks!! I had never really considered this I.e daily interest etc. As you say if I overpay then when rates do rise I will have lowered the outstanding amount so will pay interest on smaller sum. Think
I will do this and make large overpayments for as long as possible.
Thanks0
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