Lump sum or regular payments?

cherryx3x3

Hi,


We are looking to over pay our mortgage to greatly reduce the term and interest.


Would we be better paying a regular monthly payment within our yearly charge free allowance or saving this and paying it off in a lump sum when we come to renew our deal (every 2-5 years depending on what we take out at the time)


The thought we had was as we reduce the term the amount we can pay every year without charge will also decrease therefore the term wont go down as quick as we like.


Thanks

getmore4less

You pay interest on the amount borrowed for the time borrowed at the rate borrowed.

The sooner you pay the sooner it goes down.

Once you hit the ERC you save up till the next ERC free opportunity, then repeat the cycle.

If you have a good rate you may be better saving the money or putting it in a pension.