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does every penny count?
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lucylema
Posts: 834 Forumite
I want to over pay on the mortgage but only have a very small amount to play with so do I pay it off the mortgage or put it in the bank and save up?
Lucylema x :j
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Comments
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Hi Lucylema, I'm no expert and have just joined the MFW section but for your question as far as I have read it is worth over paying your mortgage unless you get a decent rate on your savings. My savings rate is 3% which is the same as my mortgage so I would rather overpay.
I hope a few others will reply for you.
Crazy runner0 -
Every penny.
If you overpay 1p a day (30p/month) on a £100,000 mortgage @ 3.99% the mortgage calculator suggests you would save £64 in interest over the lifetime of the loan. Increase the op to £10 a month and the overall saving would be over £2000.
As crazy runner says it would depend on your interest rates.0
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