When do you overpay ????

Luckyinlife

I was wondering when does everyone over pay ? is there a best time to pay in a month ? for example i get payed towards the end of the month so should i pay then or should i keep it to pay off at the start of the next month ?

Whats your approach ?

pinkteapot

We OP as soon as we get paid, so we're not tempted to spend the money instead.

My mortgage lender calculates interest daily so as far as I know, the sooner we OP the better.

Firegirl

Check your mortgage is calculated daily and if that's the case, sooner you pay in the better!

enjoyyourshoes

Check that you can overpay and there are no pesky charges.


If all OK then 'Martini' any time any place anywhere.


Seriously as much as early and as often. Got a bonus/tax refund, whack it in as soon as its in your sweaty palms.


As soon as you overpay you save on interest, there are online calculators that show the impact both in relation to £ saved but also term reduced.


A regular SO is a great start and review you financial position the day before pay day to ascertain if you can throw any more at it.

BookWorm

I have a regular OP amount that I have a SO for just after I get paid each month. Then if I get any 'extra' money during the month, I OP that as I go along.

Butti

enjoyyourshoes wrote: »

Check that you can overpay and there are no pesky charges.

I agree. I overpay soon after payday. There are penalties for over payments of 20% or more so I overpay by 19.5% 😆

newlife01

Some of my mortgage payment includes an overpayment. Otherwise I add another overpayment as soon as it's accumulated. I learnt that I had to specify that when I made the overpayment to state that I wanted the monthly payment to stay the same; otherwise the bank reduced the monthly payment.

greent

My int is calculated daily. We have a large regular OP included in our DD. I then throw money over at any time in the month, whether it be £5 cashback or £30 from ebay or £1000 tax rebate (for example!)

Rebob

I overpay as soon as I have £500 as if its even a penny under the mortgage is not recalculated

gazwaldo8

or £1000 tax rebate

Now that would be nice:dance:

FunLovinCriminal

Hi all
I'm a learner in all these things, and wanted to add a question;
"Does it make a difference on lump sum or regular repayment?"

Currently I OP £1000 every couple of months, would it make a difference if I did a regular £200 DD OP? I currently prefer knowing I have the cash in the bank "in case" I have an emergency, so I can hold off on the OP, whereas it would be automatic if it was DD.

Cheers
FLC