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Mortgage Over Payment Question....
gilesnotts
Posts: 2 Newbie
Evening everyone,
I'm trying to work out if this is the best way to help me in the future and use my money wisely and would like a bit of advice...:)
I currently have a £117,000 30 year mortgage at 2.93% fixed rate for 2 years with Platform. After that my mortgage goes up to a minimum of 6.20% for the remaining term. The total I will be paying back with interest is £227,000. However, I plan switch providers or find a better deal after the first 2 years.
I am able to pay off £1000 without incurring any chargers. I am looking to pay off £900, but my question is do over payments incur interest? Or will my £900 be interest free and my new mortgage amount be £116,100?
Thanks for reading,
Giles
I'm trying to work out if this is the best way to help me in the future and use my money wisely and would like a bit of advice...:)
I currently have a £117,000 30 year mortgage at 2.93% fixed rate for 2 years with Platform. After that my mortgage goes up to a minimum of 6.20% for the remaining term. The total I will be paying back with interest is £227,000. However, I plan switch providers or find a better deal after the first 2 years.
I am able to pay off £1000 without incurring any chargers. I am looking to pay off £900, but my question is do over payments incur interest? Or will my £900 be interest free and my new mortgage amount be £116,100?
Thanks for reading,
Giles
0
Comments
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Overpayments pay off capital. Interest is charged on your outstanding balance.0
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