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Best time to overpay?
Garfield85
Posts: 8 Forumite
Hi all, I am new to these these forums but have already picked up lots of good tips from you all!
I would really appreciate some advice with the following.
My situation is as follows:
Myself and OH have been in our flat for nearly 3 years and have reduced our mortgage down to £157k from £162k. Our original LtV when we bought in 2007 was 90% and was fixed at 5.79%. We have been on A&L SVR since July 2009 on 4.99%. We are now looking to fix for 2yrs (security) as we plan to move in summer of 2012, when we have big enough deposit for a house!
In order to receive competitive interest rate (btween 4.29-4.99%), we require 85% ltv, which at current value of our flat = a mortgage of £148750. We have savings in ISA of £8500, which would bring our mortgage requirement down to roughly £148500.
We have been told by our M.A. to put our savings into mortgage before confirming new deal. My question would be, does it matter at what point in the month I pay this lump sum to A&L? Our mortgage payments come out on 19th of each month, so would it be best to pay the lump sum soon after 19th, so it goes to paying of loan rather than the interest?
Thanks in advance.
I would really appreciate some advice with the following.
My situation is as follows:
Myself and OH have been in our flat for nearly 3 years and have reduced our mortgage down to £157k from £162k. Our original LtV when we bought in 2007 was 90% and was fixed at 5.79%. We have been on A&L SVR since July 2009 on 4.99%. We are now looking to fix for 2yrs (security) as we plan to move in summer of 2012, when we have big enough deposit for a house!
In order to receive competitive interest rate (btween 4.29-4.99%), we require 85% ltv, which at current value of our flat = a mortgage of £148750. We have savings in ISA of £8500, which would bring our mortgage requirement down to roughly £148500.
We have been told by our M.A. to put our savings into mortgage before confirming new deal. My question would be, does it matter at what point in the month I pay this lump sum to A&L? Our mortgage payments come out on 19th of each month, so would it be best to pay the lump sum soon after 19th, so it goes to paying of loan rather than the interest?
Thanks in advance.
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