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10%repayments.

my mortgage will not finish untill after my retirement date so i enquired about how i could change this .i was told i could pay 10% of the balance every april.is this a good idea ,does it reduce the term or just the monthly payments.i do have the funds to do this for a few years.will this benefit me or my lender more.

Garry

Comments

  • dumpallhere
    dumpallhere Posts: 272 Forumite
    Seventh Anniversary Combo Breaker
    Overpayments benefit you - and you can decide (need to tell the lender when starting overpayments) whether you wish to have the regular monthly payment amount reduced or whether you wish to have the term reduced.

    That said, if on higher rate (e.g. SVR, after fixed has ended) best to look for remortgage deals at lower (fixed period) interest rate rather than overpaying at higher SVR.
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