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When is it better to overpay on the mortgage?

LiveOnce
LiveOnce Posts: 476 Forumite
in Mortgages & endowments
Hi all,

When is it better to overpay on the mortgage? When the rates are high or low?

Let's say I have £30k which can go into overpayments, the saving accounts are offering 1% and my mortgage rate is 1.99% right now.

When is a good time to over pay?

Comments

  • ACG
    ACG Posts: 24,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    As soon as possible.
    The sooner you overpay, the sooner you stop paying interest on that portion of the mortgage. The onyl exception to that is if you have more expensive debt elsewhere or you can get a better savings rate after any tax deductions, in which case it would be be better to divert yoru money there instead.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
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