Overpayments!

Mrs_A_2

Hi,

Can anyone advise what should be considered before making overpayments on mortgage? I read somewhere about penalties or it only going off interest etc but I have no idea what questions to ask our mortgage provider to make sure what we are intending to do is worthwhile.

I know we can pay 10% extra off our mortgage each year. I'll ask when the 'interest' is added to try and make payments prior to that! Anything else?

Thanks!

dano17439

A lot of mortgages charge interest daily so the earlier you make overpayments, the better.

I would ask if the overpayments can be made into underpayments if you fall on hard times. Again the norm is yes but only a couple of times in a 12 month period

Once you set up a regular monthly overpayment you wont miss it.