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Does WHEN you make overpayments make a difference?

Hi everyone,

Theoretical question. Lets say I had £10,000 to overpay on my five year fixed mortgage. Is there any benefit to overpaying it at the start of the five years, or if I literally paid it a month or two before the remortgage would it essentially have the same impact?



  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    Yes it would soon as you pay the 10k off the next months normal payment the interest would be less so more capital would be payed of

    over a 5 year term it would make a good difference
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
  • daveshoelacedaveshoelace Forumite
    109 Posts
    Part of the Furniture Combo Breaker
    Great stuff, thanks very much
  • Check what your overpayment limits are during the fixed period, as if you overpay too much you would get a penalty. Many allow 10% of the mortgage balance each year, but some are far less generous.

    Initial mortgage (Dec 2012) £108,000 3.84%APR MF date Jan 2038

    Mortgage remaining £68285
    Daily interest £4.28
    MFW #14 £3746.90/£10,000
  • freedomby30freedomby30 Forumite
    38 Posts
    Is your interest daily? If not there could be an optimum time to send off the overpayment
  • SeanymphSeanymph Forumite
    2.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Your interest could be calculated and added daily - calculated daily and added monthly - I'm sure they do all sorts of other things too!

    You need to see how they do it on yours, then work backwards. But I bang mine in as soon as I have any.
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