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should i pay lump sum now or at end of mortage
titus_2
Posts: 17 Forumite
Could anyone please advise my mortage will be paid up in sept 08,have a endownment type mortage so there will be a shortfall of about £4.000 in which i have to pay.I have some money saved £500 is it best to pay it at end or make a payment now,i can pay over payments with no penalty,please advise.
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Comments
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if you pay it now, you won't be paying any interest on that money between now and the end of your mortgage. How much interest are you getting on this money (net of tax)? if it is less than the mortgage rate it is better to keep the savings, if it is lower it is best to reduce the mortgage.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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