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Reduce mortgage arrears
Wainy001
Posts: 1 Newbie
I have a mortgage with the natwest at currently 2.6% and 10 yrs left to pay the facility allows me to overpay by 10% per year I currently owe £116000 I have a current account with Halifax that has a 4k over draught facility if I added another £1000 a month onto my mortgage repayments it would still be under the 10% allowed over payment and I would get a £31 per month fee from the bank but the mortgage would be drastically reducing........ Is this viable.
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Comments
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No, do not do this if you are getting charged a £31 fee for your overdraft. Your interest rate is much lower on your mortgage so if you have any outstanding overdraft clear this FIRST.
Unfortunately there is no magic wand (assuming you dont win lotto or inherit £100K) the only way to clear your mortgage is to chip away at it over a few years. To do this you need to either spend less or earn more. And there are plenty of tips on this site to do both.
Best of luck
MCInitial mortgage (Dec 2012) £108,000 3.84%APR MF date Jan 2038
Mortgage remaining £68285
Daily interest £4.28
2017 MFW #14 £3746.90/£10,0000 -
Further to that, what if your income falls.
Where is the backup if you have a £4k overdraft and mortgage?0 -
OP, you mention arrears in the title but not in the post.
Are you in arrears?0
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