One in five mortgage holders are currently overpaying their loan each month

Yorkie1

Loughton_Monkey wrote: »

Each to their own.....

Personally, I believe what you say has only just come back as possibly viable, although the terms of many mortgages impose all sorts of restrictions on overpaying. For example, you overpay heavily for a year, and then find yourself in dire straights... Yes, your repayments are marginally lower, but you can't ask for a repayment 'holiday' just to 'catch up'. You have to keep shelling out, even if you lost your job.

Yes, there are indeed quite a few posts on the other boards where people have not been able to get their overpayments back - the T&Cs have changed.

So, relying on being able to withdraw the money / take a payment holiday is not guaranteed.

MFW_ASAP

I've overpaid in the past and will overpay in the future, but right now we're actually increasing our mortgage in order to buy new windows and doors. I'm more concerned with reducing my energy bills than reducing my mortgage. My aim is to reduce our gas usage by over 50% by installing insulation and solar water heating, reduce our electricity usage by 50% by installing energy efficient electrical items and reduce our water usage by 50% by fitting water saving devices and a rainwater harvesting system.

Once this is complete, I'll blitz the mortgage and have zero worries about rising interest rates and rising energy costs. Magic .

globalds

if we all overpay ..Then don't we help to continue the low rates of interest ?

We are in effect reducing the money supply each overpayment we make.

If increased Money supply is seen as an indicator of the economy moving in the right direction then the more that is overpaid the more interest rates stay low to correct the economy.