Overpayment in the first year?

kenzie123

Hi

We purchased our first property in October 2017 - we have £260k to pay back for 30 years.

I am keen to start some overpayments as soon as possible - but we do have some home improvements to get on with as well - eg the kitchen needs modernising.

Is it best to over pay now with the money we have saved or do the kitchen first? We don't plan on this being our final home so have a few mixed opinions on whether we should over pay in the first place.

And - I wanted to confirm that the overpayments are definitely free of interest? I am sure they are but wanted to check!

Thanks

choccyface2006

Personally I would start the overpayment habit immediately, this is easier with some lenders (who take an increased direct debit) than others who insist on a minimum capital payment of, say, £500.

I have been in both positions and it's so much easier to pay extra every month than wait until I have £500! Every little helps so start with a modest amount then increase it when you can.

Sarah

[Deleted User]

Yes, in 5 months we already accrued £500 interest on 1.84% the interest in the first 2 years is a lot, the quicker you overpay the better. We already knocked a year off our 12 year mortgage by overpaying.

julicorn

We started asap. This is also not our forever home, but we're treating the overpayments effectively as a way to have a larger down payment for the next home we buy.

monz

I just got my mortgage through and even with renovations (much needed!) I am going to be making small overpayments. If you go on Martin page about over payments £10 a month can be £800 saved in interest! So logical xx

Urbanshyne

Hi Kenzie,

If you're not happy with your kitchen - get a new kitchen! Overpaying can wait for a little while, surely?

Good luck with your MFW journey.