When to overpay on a mortgauge

scubaal

Ill try to keep this simple. I understand most morgauges questions/ querys but this one has got my brain ticking.


I am 12 months into a 24month fixed repayment morgtgauge at 2.58%
I can repay £12250.00 per year without peanalty.
I have paid this for year 1 today and my new mortgauge year starts on April 1st where another 12550 can be paid with out peanalty.


My question, should I over pay at the start of the year or wait untill the end (march2015) bearing in mind the payments will be reduced once an overpayment is made. if i leave overpaying until march I can make the bigger monthly payment reducing the total amount outstanding.( i think) or will it not make a diffrence?


hope this makes sence.

DawnW

Hi,
I didn't want to read and run. I see that you are a new poster, and what has happened is that you have probably posted in the wrong place, and that is why you haven't had any responses. This board is really related to consumer debt. No worries, simply copy your post and repost it on the Mortgage Free Wannabee board, and I am sure you will get lots of responses

FWIW I overpaid my mortgage / paid it off early. As whatever you pay off is taken off the balance owing on that same day, I personally decided to throw money at it as and when I had it, subject to the limitations on what was allowed (it was quite compulsive watching it come down). Make absolutely certain that you will not incur penalties whatever you do though.

Good luck with it xx