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Overpayments - which part to apply to?
zukibear
Posts: 72 Forumite
Afternoon
Im after a bit of advice please.
I would like to make over-payments to my mortgage, which is part repayment and part interest only.
I have used the calculators and read the items but they seem to relate to either one or the other.
I would like to know what would benefit me more applying to the repayment or to the interest only.
The calculators suggest that by overpaying £100 per month over two years and applying to the repayment I can reduce it by c£8500 on a 74k repayment mortgage and c£2400 on the 50k interest only.
The endowment for the interest only is due to mature in 2019.
The mortgage term left to run is 18years & 10 months.
Looking at the reductions from the calculators I would apply to the repayment part as the difference is greater but is it as simple as that?
Any help appreciated. Thank you
Im after a bit of advice please.
I would like to make over-payments to my mortgage, which is part repayment and part interest only.
I have used the calculators and read the items but they seem to relate to either one or the other.
I would like to know what would benefit me more applying to the repayment or to the interest only.
The calculators suggest that by overpaying £100 per month over two years and applying to the repayment I can reduce it by c£8500 on a 74k repayment mortgage and c£2400 on the 50k interest only.
The endowment for the interest only is due to mature in 2019.
The mortgage term left to run is 18years & 10 months.
Looking at the reductions from the calculators I would apply to the repayment part as the difference is greater but is it as simple as that?
Any help appreciated. Thank you
When you get to the end of your tether, tie a knot and hang on.
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depends on the rates of each bit.0
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