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overpayments is it better to reduce the term or the monthly amount?
AdventureRocks
Posts: 177 Forumite
Hello,
i am currently with TSB for my mortgage.
looking at overpayment options and would like to know which of these will result in less interest being paid/
What happens when you make extra mortgage payments?
If you make one-off, lump sum payments, you can either:
"Reduce the term of your mortgage and your monthly payments will stay the same (repayment loans only),
or,
Reduce your future monthly payments and leave your mortgage term unchanged (repayment and interest-only loans)."
i would appreciate any help please
thank you
i am currently with TSB for my mortgage.
looking at overpayment options and would like to know which of these will result in less interest being paid/
What happens when you make extra mortgage payments?
If you make one-off, lump sum payments, you can either:
"Reduce the term of your mortgage and your monthly payments will stay the same (repayment loans only),
or,
Reduce your future monthly payments and leave your mortgage term unchanged (repayment and interest-only loans)."
i would appreciate any help please
thank you
0
Comments
-
AdventureRocks wrote: »"Reduce the term of your mortgage and your monthly payments will stay the same (repayment loans only),
Will reduce the amount of interest you'll pay.0 -
Thrugelmir wrote: »Will reduce the amount of interest you'll pay.
Thank you so much!:beer:0
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