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Overpayments to reduce payments and not term.
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mrbg07546
Posts: 290 Forumite


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?
0
Comments
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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?
Are you able to overpay enough to make a difference? most fixed deals have a maximum overpayment0 -
Nationwide overpayment? 10%0
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Hi,
I believe its 10% of the initial borrowed amount per mortgage year. Called them on the helpline a few days ago
KFW0 -
So that is pretty generous and could make a big difference I guess??0
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Hi,
I believe its 10% of the initial borrowed amount per mortgage year. Called them on the helpline a few days ago
KFW
H@lif@x is 10% of balance at beginning of each year.Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_Now a Part Timer from 27.10.190
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