Overpaying on your mortgage? 23 July 2012 at 8:58AM in Mortgage-free wannabe 4 replies 1.1K views

lucylema

I AM going to start to overpay on my mortgage but just wondered......

Do you all pay a set amount each month or is it a case of space cash gets paid to the mortgage. I am a temp so my money can differ each week and sometimes not at all.

Do the pennies make a difference?

Barney30

I believe you can either do a regular amount or pay off lump sums. You will have to check out the terms and conditions in your mortgage as there may be a limit of the amount you can pay off.

gymsalesjames

Also, small amounts can definitely add up. Have a search for one of the mortgage calculators and put your figures in, then have a play by putting in different overpayment amounts and see the effect it has.

VoucherMan

I have a regular standing order of £200 a month but if I've got some 'spare money' I just temporarily increase it.

I paid an extra £300 this month. I reckon it will knock about £150 off the overall interest, and reduce the term by about a month so it can all help.

getmore4less

With variable income a cash flow buffer is needed first.

an easy calculator to use is

http://www.whatsthecost.com/mortgage.aspx

if you set to interest only you can change your payments by £1/£10/£100 etc. and see the effect on a monthly basis inthe details.

Check for overpayment penalties