TSB Query

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marell
marell Posts: 1 Newbie
in Mortgages & endowments
Mortgage is 2.5% repayment and interest is calculated daily.
Is it better to overpay monthly or in a lump sum at the beginning of the year? Which would take more off the mortgage?

Thanks

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  • ACG
    ACG Posts: 23,752 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
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    Interest is calculated daily, so the sooner you pay it off the sooner interest stops being charged.

    If you have the money sat there and intend to use it to pay down your mortgage then (subject to how much you can overpay without incurring charges) its usually better to pay it off immediately.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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