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Overpayments
garcon6
Posts: 485 Forumite
I would like to start making some overpayments on my mortgage which is with Leeds Building Society. Is it better to make a lump sum yearly or monthly had it for 3 years now, we are allowed to pay 10% yearly.
If yearly is better would it be best to put the money in a high interest account.
Mortgage is about £132,000 as put a£32,000 deposit.
Look forward to hearing some advice.
Thanks,
Garcon.
If yearly is better would it be best to put the money in a high interest account.
Mortgage is about £132,000 as put a£32,000 deposit.
Look forward to hearing some advice.
Thanks,
Garcon.
0
Comments
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Is interest calculated daily, monthly or annually?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
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I think it's annually0
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If it is annual and you are unable to have it changed to a more frequent calculation basis, you are better off saving the money in a decent high-interest account, then paying it off the mortgage just before the annual interest calculation date.
Then you build up another lump sum for another twelve months time, again overpaying just before the annual calculation date.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
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