Talk me through overpaying please.

62 Posts
I'm new here, don't have a mortgage but hopefully will have in the future.
I understand overpaying, I have looked at the calculator, I have read what Martin has said.
But I have seen on rightmove that some houses are being sold for the same as they were bought for 5 or even 10 years ago. I know overpaying is good, but my brain stops working when I see these houses making no profit. It must be beneficial to overpay on these houses too, but how? Why?
I understand overpaying, I have looked at the calculator, I have read what Martin has said.
But I have seen on rightmove that some houses are being sold for the same as they were bought for 5 or even 10 years ago. I know overpaying is good, but my brain stops working when I see these houses making no profit. It must be beneficial to overpay on these houses too, but how? Why?
Trying to connect.
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Overpayment however has no bearing on house prices themselves - the value of the house you buy can go up / down or stay the same. Its up to you to decide if the house is worth the money compared to how much it would cost to rent something similar etc
Like if you owe £100 a month (for example) and you actually pay £500 a month, can you at some point drop down to £80 a month as long as you have paid an average of over £100 per month? I'm guessing not, am I right?
I know these must seem really basic questions, I'm just trying to get my head around it all.
Jodles
1% challenge- /1525
There may be people who have other mortgage products who can advise better who will be along soon.
If you had overpaid each month for some years, let's say, without changing the term you could then remortgage (subject to the bank's approval) and keep the original term (which would drop your payments).