Mortgage and house buying advice?

Enchantica

MB1919 wrote: »

It's definitely worth phoning Santander about making overpayments. With your fixed rate standing at 5.99%, this will be considerably higher than the interest on your savings. Therefore, making overpayments makes financial sense. However, once you make an overpayment you can't get the money back! Just make sure you have sufficient savings in the event of an emergency and of course keep some funds for the wedding. Many banks allow overpayments of up to 10% per annum, but Santander may be more/less generous. Even a relatively small monthly overpayment of £100 will make a difference in the longer term. Give them a call.

Thanks for your advice, I will give them a call

Raggs_2

Take a look at the mortgage calculator on this site. Putting your mortgage in, with a £500 pound a month overpayment, has you paying off your mortgage in about another 8 years. And save you something like 17 years of payments, and £60,000 in interest.

If you do it for only 3 years from now, you'll have about 20k knocked off where your mortgage would have been. Which means, when it sells, 20k more in your pocket.

It may be you can't overpay by this much, but it's a nice example of just how much time and money you can save. Even if you just keep it in mind for your next property.

As long as you have your emergency savings (by the sounds of it you could be saving another 500 a month, so that would suggest so, or it's doable), then paying off the mortgage is probably the best thing to do, especially whilst the interest rate on it is more than anything you could get on your savings.