Overpayments

londondealer

Hello peeps can I pick your brains?

I'm about to make an overpayment on my investment property. The mortgage company told me I can overpay either towards the capital or reduce the length of the mortgage - what would you do?

Thank you!

hop3y

Reduce the mortgage! You'll be free in no time!

I'm making my first mortgage payment this month! That's what I would do anyway.

ElusiveLucy

It depends whether you want to decrease your monthly payments or whether you want to shorten your mortgage term.

If you are unsure how the future will pan out it is probably best to reduce monthly payments. My choice was to shorten the term because I knew I had sufficient put away to cover the mortgage if any problems arose.

pjread

if you have a residential mortgage, pay that off first if I were you

londondealer

Thank you all! Really appreciate it. It's a investment property so I'll probably pay of the capital.