Advice on Overpayments on Northern Rock Together Mortgage 24 June 2007 at 11:08AM in Mortgage-free wannabe 1 reply 913 views

stradlinho

Hi all

We and my GF are 3 months into a Northern Rock Together mortgage.

We borrowed 95050 at a rate of 6.49% on a 2 year fixed.

There is no overpayment limit on this product and would like to start overpaying by £55 month taking total to £700 pcm.

I have instructed NR to take £700 a month.

Would it be better to setup a daily standing order to take the £55 therfore saving on the interest daily ???

NorthernLad_2

Northern Rock calculate their interest on a daily basis (not all mortgages do and some calculate as little as once a year!) so making daily rather than monthly overpayments will reduce the amount of interest you pay. The amount of interest you pay is recalculated the day after your payment has cleared.