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Overpay my mortgage, should i go for shorter term or smaller sum?
Andy_Bez
Posts: 6 Forumite
Overpay my mortgage, should i go for shorter term or smaller sum
Can anyone advise on overpaying mortgages please. I have a small lump sum I can use to pay off some of my mortgage after clearing credit cards with high interest.
If i can overpay my mortgages by £1000+, should I take the option of making the mortgage term shorter, or make the overall total sum less.
Should I chip away at the total, or the years?
My term is 2.5% over 22 years.
I can pay £1500 into it, but am not sure if i benefit from making the over all sum smaller with 22 years remaining, or keep the payments the same but shorten the deal by 7 months etc.
Its at base rate and a very good deal by all regards (at the moment) of 2.5%
Your advice welcome.
Can anyone advise on overpaying mortgages please. I have a small lump sum I can use to pay off some of my mortgage after clearing credit cards with high interest.
If i can overpay my mortgages by £1000+, should I take the option of making the mortgage term shorter, or make the overall total sum less.
Should I chip away at the total, or the years?
My term is 2.5% over 22 years.
I can pay £1500 into it, but am not sure if i benefit from making the over all sum smaller with 22 years remaining, or keep the payments the same but shorten the deal by 7 months etc.
Its at base rate and a very good deal by all regards (at the moment) of 2.5%
Your advice welcome.
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