Mortgage Overpayments Help & Advice

Andrea75

Hello,

I am new to this and would be grateful for advice anyone can give me with regard to overpaying on my mortgage.

I have spoken with Customer Services on a few occasions now and have been given conflicting information each time and I am now at a loss as to what to do for the best :-(

I am interested to know when the best time of the month is to make overpayments? I am currently making them on 1st of the month but due to a recent pay rise I will now have extra cash I can free up for further payments.

Is it more beneficial to make £100 payment on the 1st of the month (which is when my mortgage comes out) or split the overpayments down to 4 regular payments throughout the month? I don't know what is best and no-one at Halifax can seem to give me a definitive answer.

My mortgage term is currently 20 years but I want to reduce the term by a few years if possible.

Thank you very much for any advice you are able to offer at this frustrating time.

opinions4u

Interest is calculated daily on nearly all Halifax mortgages (only a few pre-2001 cases will be on annual interest).

Therefore the best time to make an overpayment is as soon as possible. Don't hang on to the money, pay it off the mortgage straight away.

Andrea75

Thank you kindly for your comments.