Overpayment questions

pramsay13

I have a Scottish Widows fixed rate tracker - 3rd year or 3 year fix.
Every mortgage year (September to September) I can make a one-off overpayment of up to 10% of balance, so around £2,800 of £28,000 balance.
I have £2,800 available and the mortgage interest rate is higher than any savings interest I can get on it, therefore is it worth overpaying now or just wait until August next year?
If I make a payment will it affect interest payable immediately or are the repayments fixed for the term of the fixed rate deal?

foxy-stoat

Overpay the mortgage if the interest is higher than savings - it earn you more money in the long run as the interest is charged on the outstanding balance month to month. Unless you NEED the £2.8K in the bank for anything that is.

pramsay13

Thanks foxy, I already have some spare in higher interest earning current accounts so will overpay.

It was whether interest was calculated monthly or annually that had me stumped.

foxy-stoat

Well mine is calculated daily, paid monthly. No idea about SW mortgages though.