Overpayments

John_Mc_5

Can anyone tell me please if it is better to make monthly overpayments or to save the money and make a one off capital repaynent each year on 70k at 5.75% with 19 years to go.

Angela

I started a thread about this last year.

I make Capital Repayments but I can make more than one a year(can you only make one a year with the mortgage you have?)

I believe there is not much of a muchness,the only problem with overpayments is that you are tied with them,if your circumstances changed and you suddenly need to change the payment amount it make take a time to do this.

With Capital repayments you make them when you want to and you decide the amount each time.

I think if you have an isa it is best to have this maxed out before making any repayments as well.

Just been to try and find my old thread but it was on the old site and I cant get to it,hope this is of some help.

I am sure someone more knowledgeable will be along soon to help.

Found the link to my other post http://forums.moneysavingexpert.com/showthread.html?t=1138

Just realised my subject was savings v's capital repayment so not the question you were asking about at all.

Sorry to have waffled on about something quite differant.

Just read the whole thread and it does develope into the question you originally asked.