Plough into Mortgage now, or remortgage at lower capital cost

TSAN

I was wondering whether it was better to put £10k into my mortgage now at 4.99% or to invest till I remortgage next year and then to remortgage at £10k lower capital cost? Placing into my money in the mortgage now seems to be paying of interest rather than lowering capital cost?

lynnexxxo

I think it depends on whether your mortgage deal allows you to overpay, how often the interest is calculated and if you can find a short term easy access savings account that will pay you more than 4.99% (after tax).

If you can make more more in a savings account than you lose by paying interest on your mortgage then put the money in a savings.

However if you have a mortgage that overpayment is easy, then if you put the 10k into your mortgage and continue to make the same payments you will reduce your capital (slightly).