One off payment

19 Posts
Evening,
I have a mortgage with Scottish Widows, Professional Mortgage tracker at 1.25%. I've got £22781 left and I am overpaying by £633.20 for a total of £1000 monthly. I have used a mortgage calculator and according to it, I've got 22 more monthly payments left.
I have also got £10000 on an ISA and some other savings that I don't want to touch. I am wondering though whether it would be better for me to make a one off mortgage payment with the £10000 in the ISA. I believe this would reduce the period left to 12 months? The ISA is giving me about £10 interest monthly.
Any suggestions?
Thanks in advance
I have a mortgage with Scottish Widows, Professional Mortgage tracker at 1.25%. I've got £22781 left and I am overpaying by £633.20 for a total of £1000 monthly. I have used a mortgage calculator and according to it, I've got 22 more monthly payments left.
I have also got £10000 on an ISA and some other savings that I don't want to touch. I am wondering though whether it would be better for me to make a one off mortgage payment with the £10000 in the ISA. I believe this would reduce the period left to 12 months? The ISA is giving me about £10 interest monthly.
Any suggestions?
Thanks in advance
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It depends on what your ISA interest rate is, but I'd imagine it is similar.
Personally I'd continue with your £1000 a month, but not lump over pay the £10,000. You won't have that much of a benefit.
MFW 2014 £2,990,MFW 2013 £7,905, MFW 2012 £12,216
Opening Mortgage Balance (15th July 2010): £200,999
Current Mortgage Balance(2nd July 2015): £150,999
Total overpayments to date: £30,292.00
Updated 19/05/2015
I am trying to work all this out in my head but I am not sure whether I am missing something out or making incorrect assumptions.
Many thanks in advance again
anybody else could please give me some advice on the above?
Thanks a lot in advance.
But you wont have 10k in the bank. You need to work out exactly how many monthly payments are going to be saved by overpaying that 10k. Check out the overpayments calc on this site.
MissWillow is my OH!
I will have a look at the calculator but I think it would save me around 11-12 months...