When in month to overpay mortgage?

amnblog

There you go then, no matter how wrong you get it, it won't cost you more than £1.60

dimbo61

Pay the extra off the day you get paid!
Set up the DD for around Pay Day

getmore4less

amnblog wrote: »

There you go then, no matter how wrong you get it, it won't cost you more than £1.60

Per payment compounded over the life of the mortgage.

With the overpayment @ 3.88% that's 129 months total saving up to £256.

Thrugelmir

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.”

Strummer22

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:

chopper78

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.

xosarahm

Thanks guys, this has been really helpful and definitely food for thought!