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Hiya, Does Anyone Know When Is The Best Month To Pay A Small Extra Annual Lump Summ Off Of A Mortgage,? I Have Heard That Depending On The Month That It Is Payed It Effects Tax And Interest Rates For The Coming Year Just Dont Know Which Month It Is. Many Thanks For Any Help Or Advice

Comments

  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Is it a residential mortgage i.e. your own?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • KASH_2
    KASH_2 Posts: 5 Forumite
    Yes My Own
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Do you know if your current deal is daily, monthly or annual interest?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • KASH_2
    KASH_2 Posts: 5 Forumite
    Hiya Its A Repayment Mortgage Monthly Interest
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    KASH wrote: »
    Hiya Its A Repayment Mortgage Monthly Interest

    With a monthly interest mortgage, you will benefit from any overpayment the following month after you have made it.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • KASH_2
    KASH_2 Posts: 5 Forumite
    Thankyou For Your Advice Its Just I Wanted To Know As I Was Going To Save Extra Up To The Limit Im Allowed Without Getting Stung For It Throughout The Year And Pay The Lump Sum Off I Think Its Before April Not Sure, So By Paying Extra Monthly Instead Of Yearly Id Be A Little Better Off Than If I Payed It At The End Of The Year Is That Right?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    It's very very difficult to read your posts due to Capital Letters At The Start Of Every Word
  • KASH_2
    KASH_2 Posts: 5 Forumite
    Thankyou for pointing that out, it is very early morning lol
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You need to look at your key facts document to see how much you can pay off, when and how

    Most lenders allow 10% of the balance as at 1st Jan, but some have limits of £500 A month, some have no limits at all and some don't allow overpaymetns

    Ring up your lender and speak to them (note the date time and person you speak to) get them to tell you the best time to do it when they check your account

    MM
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • AndyWallace
    AndyWallace Posts: 253 Forumite
    Ring up your lender and speak to them (note the date time and person you speak to) get them to tell you the best time to do it when they check your account

    MM

    For certainty this is the best method.

    Andy.
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