Overpayments to reduce payments and not term.

282 Posts


Hi- was just wondering if there's any flaw in my tactic.
We are about to sign for a house.
We are paying 1220 mortgage a month(fixed for 5) and the mortgage is 27 years
If we over pay a lot in the first few months and we keep the term the same would I get the following benefits.
- less interest over term.
- reduced monthly payments so when I get income protection to cover mortgage I will need to cover less. So it de risks me going forward?
We are about to sign for a house.
We are paying 1220 mortgage a month(fixed for 5) and the mortgage is 27 years
If we over pay a lot in the first few months and we keep the term the same would I get the following benefits.
- less interest over term.
- reduced monthly payments so when I get income protection to cover mortgage I will need to cover less. So it de risks me going forward?
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Are you able to overpay enough to make a difference? most fixed deals have a maximum overpayment
Is it 10% a year?
So if mortgage is 100k you can pay 10k over lament per year??
I believe its 10% of the initial borrowed amount per mortgage year. Called them on the helpline a few days ago
KFW
[email protected]@x is 10% of balance at beginning of each year.