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When in month to overpay mortgage?
Comments
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There you go then, no matter how wrong you get it, it won't cost you more than £1.60I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Pay the extra off the day you get paid!
Set up the DD for around Pay Day0 -
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getmore4less wrote: »Per payment compounded over the life of the mortgage.
With the overpayment @ 3.88% that's 129 months total saving up to £256.
To quote Albert Einstein“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”0 -
getmore4less wrote: »With day interest the sooner the better is the time to pay it so as soon as it hits your bank send it to the mortgage.
3.88% saves you up to £1.60 every £500 overpayment.
Yeah - in the month that you make it. I hope no-one is confused about the fact that it'll save the OP about £39,000 over the lifetime of the mortgage :rotfl:0 -
Of course, if you could afford it, you would be better making a £6000 overpayment on 1st January and then no more throughout the year rather than 12 x monthly £500 payments. Or maybe £1000 a month for six months.
This would be optimal if it was an option. Don't feel that overpayments must be spread throughout the year.0 -
Thanks guys, this has been really helpful and definitely food for thought!0
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