Overpayment Question 26 July 2017 at 4:21PM in Mortgage-free wannabe 2 replies 367 views

Zola.

Probably a silly question, but I will ask anyway.

Say you owe £150,000 on the mortgage. When you make the regular monthly mortgage payment of £500... it seems only about half of that comes off the actual debt figure owed, due to interest.

If you made an overpayment of £2000 out of the blue, would it be the same effectively, or would it knock £2000 off the total owed as its not in the standard mortgage timeline?

jackomdj

That would come off the total you owe.

wishingthemortgaheaway

If you enter your details on the mse overpayment calculator it will tell you how much interest overpaying by that amount would save you and by how much it would reduce your mortgage term.