Overpayments on you mortgage

greenfingers_3

Did you know that if you make overpayments on your mortgage, at the end of the year your mortgage company may recalculate & reduce your monthly payments to reflect this - which defeats the object of paying your mortgage off quickly.

herbiesjp

Only if they calculate the interest on an annual basis.

If you want to make overpayments go for a daily interest scheme.

HTH

lipidicman

I think the OP means they will adjust so that it will still take the full term.

However you are free to overpay again. So keep at it.


A friend has hers with nearly 20 years to go and the lender wants 19p a month. Makes her laugh! However, by not paying it she doesn't need to pay the final fee, or the deed storage fee

UK007BullDog

Ah, but the longer she holds out the fees rise. So she might be better off to pay it all now and stop the mortgage. Currently the 19p are £45.60 in total in 20 yrs.

The fees depending on lender could be anything from £80 to £300.

But in 20 yrs time the fees could have morphed into thousands (inflation etc, as we will not know what the future hands us). Or she could be very lucky and needs to pay nothing in 20 yrs time (but very unlikely, I cannot see any lender giving up that cash cow, can you?).