Paying off Some of the Mortgage

photoman4

Hello All
My son is thinking of paying off some of his mortgage. Can you help please with the basic "How to choose whether to do so or not?.

ceh209

What's the interest rate on the mortgage?
What interest rate could he get on savings, or rate he has on any other debts?
Does he have rainy day savings?

photoman4

Sorry I have not been well, I will get back to you. Many thanks

photoman4

Hello CEH209 I am back. My son tells me the following,
Balance £77,000
Interest 2.29 %
term 5 years ends 2021 estimated repaid 2040.
He mentioned that he may repay some of it, what do you think? He also says thank you.
Have a good Easter Weekend

Thrugelmir

Certainly no harm in making overpayments. If he has money spare. As will reduce the debt owed and therefore the interest charged. Resulting in a reduced mortgage term. How much is he proposing to pay?

dimbo61

I think " term 5 years ending 2021" you mean your Son has a 5 year fixed rate deal.
He may have to pay Early repayment charges if he overlays more than 10 percent in any one year.
He needs to read the terms and conditions of his mortgage offer or give the mortgage centre a call.
Overpaying every month will help clear the mortgage quicker and save interest.
He could also consider a regular saver such as Nationwide 5percent saver

photoman4

I have put your replies to him and he is going to make a decision. He asks me to say thank you on his behalf. Many thanks