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Effect of lump sum overpayment on my 5yr fixed morgage.

carl0s · 2012-06-03 20:45:35

Hi. I know I should ask First Direct themselves, and I will be doing, but it's the bank holiday. I have a £112,500 mortgage on my £150,000 house. I am paying £585/month on a 5yr fixed deal. I can't remember the numbers, but it's a reasonably good deal I think (same package now costs £625/month with them, so I must've got…

Comments

robatwork Posts: 7,350 Forumite

4 June 2012 at 10:10PM

The calculation is quite simple - can you save more interest paying the £12,000 off than you can earn in interest if you put the £12,000 in a savings plan?

The normal answer is Yes...but FD will be able to tell you exactly what you are saving.

Unless, of course, you want to take a punt on pork bellies or England winning the Euros, or a ridiculous punt on Andy Murray winning a major...

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