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Overpayment on a part and part mortgage
Coppice10
Posts: 62 Forumite
I know it's a fortunate position right now, but we are in a position to overpay on our mortgage now.
We have £114k on Interest Only and £40k on straight repayment. There is about 13 years left to go and we have a plan for the capital element of the Interest only.
Should we specify the overpayment goes to the Interest only portion or the capital portion? Does it actually make a difference?
Many thanks for any thoughts
We have £114k on Interest Only and £40k on straight repayment. There is about 13 years left to go and we have a plan for the capital element of the Interest only.
Should we specify the overpayment goes to the Interest only portion or the capital portion? Does it actually make a difference?
Many thanks for any thoughts
1
Comments
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If you can direct over payments to the interest only part then you'll know what your target is.0
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Are they both on the same rate and going to stay that way?
Overpaying the repayment part reduces you contractual payment quicker.
how confident are you in the plan for the I/O part?
0
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