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Overpay before borrowing more?
cjames7588
Posts: 11 Forumite
Hi Forum,
My wife and I are coming to the end of our mortgage deal (Feb 22) and are planning to borrow some more money to do an extension. We are wondering about overpaying our mortgage over the next few months as we have a large amount in savings.
My wife and I are coming to the end of our mortgage deal (Feb 22) and are planning to borrow some more money to do an extension. We are wondering about overpaying our mortgage over the next few months as we have a large amount in savings.
Obviously the interest rate in saving is plummeting and if we weren’t borrowing more money then it would make sense to overpay but the total mortgage value (after we borrow extra) won’t change whether we overpay or not so will the only saving we gain be on the interest we will be charged daily over the next 3 months?
I hope this makes sense, please comment with questions if anything needs clarifying, I’m just not sure whether it’s going to have a massive impact or not.
I hope this makes sense, please comment with questions if anything needs clarifying, I’m just not sure whether it’s going to have a massive impact or not.
Thanks!
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