Overpayments on mortgage during a fixed rate

sitesafe

Hi


I am 3 years into my 5 year fix was wondering if there would be any point in making overpayments during this time (which are 10% of mortgage balance maximum) if I plan to sell the house after the 5 years is up? Would I gain anything from doing so?


Thank you

hounslowfish

You might gain more in saved interest than you'd gain by placing that money in a savings account.

Waldorf_Statler

Basic maths test is: whichever is greater, the interest on the mortgage or the interest available on savings. If there's not much in it then you might as well keep it in savings so it is more accessible.

pjread

Waldorf_Statler wrote: »

Basic maths test is: whichever is greater, the interest on the mortgage or the interest available on savings. If there's not much in it then you might as well keep it in savings so it is more accessible.

Point worth making is that's the savings rate post-tax - so e.g. if you've a mortgage at 2.4% you'd need to be making 3% as a basic rate taxpayer, or 4% as a higher rate taxpayer. Both would be "down" if they were saving at 2,9%