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overpayment/lump sum question
Cookie82
Posts: 27 Forumite
Hi All
My mortgage deal has recently come to an end dropping from 6.5% to 3.5% SVR saving approx £250 per month. I am planning to do overpayments of this amount on a monthly basis (interest is charge daily so I believe it doesnt really matter when I overpay?) Do I need to let my mortgage lender (halifax) know that I am going to make overpayments or just set up standing order?
I also wanted to ask was it worth me paying a lump sum of the mortgage off? Our mortgage is currently 160000 over 20 years. We are looking to move in the next 12 months and have about £20,000 saved in various ISA's etc. Is it worth us paying a £20k lump sum of our mortgage as we prob won't move for another year rather than saving it to put towards a more expensive property? There doesnt appear to be any early repayment charge now we have moved onto SVR
Many thanks I hope it makes sense!
My mortgage deal has recently come to an end dropping from 6.5% to 3.5% SVR saving approx £250 per month. I am planning to do overpayments of this amount on a monthly basis (interest is charge daily so I believe it doesnt really matter when I overpay?) Do I need to let my mortgage lender (halifax) know that I am going to make overpayments or just set up standing order?
I also wanted to ask was it worth me paying a lump sum of the mortgage off? Our mortgage is currently 160000 over 20 years. We are looking to move in the next 12 months and have about £20,000 saved in various ISA's etc. Is it worth us paying a £20k lump sum of our mortgage as we prob won't move for another year rather than saving it to put towards a more expensive property? There doesnt appear to be any early repayment charge now we have moved onto SVR
Many thanks I hope it makes sense!
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