Mortgage overpayments

shonafraser · 23 July 2017 at 8:26PM

Can anyone tell me as I do not have a mathematical head.
If you had a new 30 year mortgage of £152000 with an 2 year introductory rate of 1.34% then for the remaining 28 years is 3.74% and you made a £100 overpayment for the first 3 years how much would you actually save?
I am trying to convince someone it is better to have that small monthly overpayment now rather than years down the line.
Sorry if this is a silly thing to ask?

shonafraser · 24 July 2017 at 5:50PM

oops forgot to say £100 overpayment every month for the first 3 years....can nobody help?

newgirly · 24 July 2017 at 7:42PM

Hi, my spreadsheet won't let me change the interest rate, if the rate was 3.74 for the whole term the £100 overpayments would knock 14 months off the term, paying 100pm after 20 years of the mortgage running-still for 3 years would knock 7 months off. That's the best example I can do!