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Lump sum overpayment - will savings in interest be more than early repayment charge?

winstononions · 2013-04-19 21:17:43

* I've got about £50,000 left to pay on my mortgage. * I've got about £40,000 savings. * I'm currently 18 months into a 3 year fixed rate deal at 3.65%. * I can pay up to £6000 per year as an early repayment without incurring a penalty. I've already paid that £6000 in for this year. * The early repayment penalty currently…

Comments

dimbo61 Posts: 13,727 Forumite

20 April 2013 at 5:36PM

Well done this will save you thousands in interest and no ERC,s to pay.
All you need to do now is set up the much bigger DD or standing order and make sure you have enough money in your account every month.
Drip feed the money from a savings account

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