Question. about paying extra to morgage

Christie

Hi, we have about 6 policies with Standard Life, four of them mature this year but will not pay off all of our morgage. We have four different morgage accounts and hopefully we can pay the small one off with the proceeds of the mature policies. This will leave us with one interest only morgage and two capital repayment, my question is, we will be about £150 per month better off at the end of the year between the end of the small morgage repayment and the endowment payments. Would it be a good idea to pay extra to both the capital repayment morgages, one of them or should we just invest the extra money we`ll have. I can post numbers if that helps. Thank you and I hope this makes sense.

kingstreet

Make voluntary overpayments to reduce the mortgage further. Particularly useful if the mortgage rate you're paying is higher than you'd get if you saved the money instead.

Christie

Thanks Kingstreet,

Should I pay extra to both or just one.

we have one account £11,872.64 remaining morgage term 11yrs 3mths we are paying £105.03 each month at 3.79%

and one account £19.833.39 remaining term 10yrs 2 mths at £190.48 per month at 3.79%

are you able to tell me how much quicker we could pay them off if we overpaid by £150 per month.
Thanks, as you can tell I`m not good with maths.

kingstreet

If the rate's the same, it makes no difference. And no, I can't tell you how much more quickly you'll pay them off.

One of the others might have a link to an overpayment calculator and will post you a link to it soon.

Christie

Thank you.

RenovationMan

At 3.79% it'd be difficult to find a guaranteed tax-free investment to beat your mortgage rate, so as long as you have sufficient emergency savings and your pension projections are on track to provide you with the quality of retirement you desire, then overpaying your mortgage would be a good idea for your finances.

TonyRimmer

Playing devils advocate you have to ask yourself which is more important...paying your mortgage back to leave you with bricks and mortar on retirement....or boosting your pension leaving you with an increased income for life??? There is a train of thought currently that bricks and mortar are a boost for your childrens inheritance rather than an investment in your future quality of life. Thats why we are seeing a massive increase in the uptake of lifetime mortgages.
be sure what your priorities are before you decide

Tony







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