Lump sum or monthly installments

rossdixon1984

we currently owe £75000 on our mortgage and have 19 years remaining. Our interest rate is 2.76%. 

We have savings of about £20,000 and we are able to overpay 10%. With this is in mind we are wanting to overpay. 

Would it be better to pay £7500 in one go or pay that amount over 12 monthly payments or do a mixture of both? 

Thanks for any help or advice advice in advance 

Socajam

It's all good to want to overpay, but if you have an emergency, do you have the money to fund it?
Do you have a life happens fund and an emergency fund.
If not, then I would keep that money for that purpose and for anything else that might come up.
I use to pay an extra 50-100 per month which helped a lot to reduce my mortgage.

Moneyminded

Assuming that your mortgage interest is calculated daily (is it?) then paying in 1 lump sum will reduce the interest quicker and therefore save you more money. Before making the payment double check with your lender the exact figure you are allowed to overpay to make sure you don't incur any penalties.