Lump sum overpayment?

strawberrypud

We can overpay 10% of our mortgage annually without penalty and were wondering if it is worth it in the long run?

I looked at a mortgage overpayment calculator but they seem to ask about what monthly overpayment you intend to make rather than a one off lump sum overpayment so that confused me.

Can anyone advise me please?

originalmiscellany

Yes do it! Anything you can do to lower the outstanding amount and ideally if you can keep the repayment rates up, then you'll save thousands of pounds in interest. Happy days! As usual, people will give more detailed advice on here but yes, with interest rates at a record low, you will be wise to over pay and put as much as you can into it

dimbo61

Overpaying your mortgage as long as you dont have any other expensive debt ( ie Credit cards) is nearly always a good idea.
Now you dont give your mortgage rate but unless its a super low tracker deal ( say BOE base rate 0.5% + 0.75 )then its worth doing.
Make sure you have an emergency fund of 3/6 months of income and then OP the mortgage.