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Overpayments
garcon6
Posts: 485 Forumite
Recently read in the press about overpaying on a mortgage and with the Leeds we can pay 10% in a year which is roughly £12,000 we have had our mortgage for 3 years now.
I think its a good idea especially as we would be able to get more equality in our house. Just looking for some general feedback on overpaying as our mortgage is 5 years fixed.
Look forward to some feedback,
Garcon 6
I think its a good idea especially as we would be able to get more equality in our house. Just looking for some general feedback on overpaying as our mortgage is 5 years fixed.
Look forward to some feedback,
Garcon 6
0
Comments
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If you have £12k in an account and you are getting 3% on it, then paying tax on that, leaving you with a net 2.4% (BRT) or 1.8% (HRT) and your mortgage rate is 4%, you are going to make quite a gain by paying it off the mortgage, over having the money in a savings account.
Check the interest calculation method of your mortgage. If it's daily, pay off the lump sum ASAP. If it's "annual rest" don't pay it off until a few weeks before the annual interest calculation is done for the next year.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Not sure if it will help much on equality though!0
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