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Overpaying a mortgage
parky772
Posts: 1 Newbie
I have a mortgage which is part repayment and part interest only split a third and two thirds respectively. I can overpay 20% of my monbthly repayement with no penalty. I want to reduce the asmount of the overall mortgage when I need to remortgage in 5 years time. Is it best to target the overpayment to the repayment part or interest only part. Many thanks for any advice received.
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Comments
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Assuming both on the same rate, it will not make much difference, repaying the repayment part, will presumably reduce your future monthly payments by more, which you probably don't want, so possibly best to repay the interest only part?
If you want to overpay more, why not switch the interest only part to repayment, effectively then you will be over paying the capital element as well as the 20%?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.0
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