How best to overpay on Mortgage

mrsbneeg

We (hubby and I) moved house in January and started a 20 year mortgage of £82000. The mortgage is a repayment fixed for the term at 5.97%. Interest calculated daily. We are able to overpay be £5000 per year and have windows at years 6 9 11 and 15 to repay in full without penalty. We received some money in October that has allowed us to pay £5000 off the capital (taking us to 17.4 years :T and £75980 and enough to do the same next year (ie in January). My question is...is it better to pay the £5000 at the beginning of the mortgage year or to overpay each month £416.00 (£5000 divided into 12 months).
We have never really thought about overpaying, to allow us to be mortgage free, but after reading posts on this forum, we have the bug and are determined to repay our mortgage as quick as funds will allow (hopefully in window 6) Thanks in advance
Nic

Squirrel29

Hi there :hello:

My gut feeling would be to pay off monthly as the interest in calculated daily. However I think you would be better moving this post to the mortgage board, there are a few mortgage advisors over there who would be better qualified than me (just look at my sig - I am not too good with money but am trying:rotfl:).

I admire your enthusiasm though and best of luck with it!

mumofjusttwo

Be careful as some mortgage only allow you to do 10% overpayment on your mortgage each year, may be worth checking the details and I do believe that mortgage are worked out on a daily interest rate now.

I would think that with that in mind I would pay it off as soon as possible but this