We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Lump sum overpayments - best outcome?
Options

Manc37
Posts: 23 Forumite
Hi - my partner and I just bought a house and we have a mortgage which currently stands at £111000 at 1.54%. The length of the mortgage is 17.5 years. We have a very flexible tracker mortgage which enables us to make unlimited overpayments.
We wish to make an overpayment of £11,000 this year. However, I'd like advice on the best way to do this. Should we a) make the overpayment in order to reduce the no. of years left on the mortgage or b) make the overpayment to reduce the mortgage amount that we pay each month. If we go for 'b' we will continue to pay our current mortgage amount and so we will be making monthly overpayments going forwards.
We think that 'b' is the best option but we aren't sure if there's a hidden advantage to 'a' which we have overlooked. Your advice is much appreciated!
We wish to make an overpayment of £11,000 this year. However, I'd like advice on the best way to do this. Should we a) make the overpayment in order to reduce the no. of years left on the mortgage or b) make the overpayment to reduce the mortgage amount that we pay each month. If we go for 'b' we will continue to pay our current mortgage amount and so we will be making monthly overpayments going forwards.
We think that 'b' is the best option but we aren't sure if there's a hidden advantage to 'a' which we have overlooked. Your advice is much appreciated!
0
Comments
-
Ps - should have also said that we plan to save and make annual lump sum overpayments of £20,000 each year. We hope to be mortgage free in 5yrs time0
-
Just bumping this!0
-
You could make more by saving the money (and you could consider investing it).0
-
There aren't many savings accounts which have interest rates higher than 1.54% these days (besides regular savers which usually have a max on the monthly amounts you can save). We'd prefer to pay off the mortgage.0
-
Bumping! Advice is welcome0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.7K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards