in Mortgage-free wannabe
2 replies 61 views
Hi everyone, first time posting. I have 8 years left on my mortgage through overpayments. It’s a repayment mortgage at 2.77 percent. There are no penalties for overpaying.
I can now afford to pay about £750 per month overpayment. I also pay an extra £133 per month extra as part of my direct debut from my mortgage company.
I went to pay my £750 yesterday And the lady said if you can afford to pay £1098 which is 3 x my mortgage amount then that’s better because they can recalculate my mortgage and I can either reduce the term or the monthly payment. I just want to get this mortgage paid as soon as. She also said to wait while I have a bigger lump sum and pay it then because I would notice more of a difference. Interest is calculated at a daily rate and it’s a buy to let mortgage.
I guess my question is does it matter how much I pay and when I pay it if my plan is to be mortgage free ASAP? Should I be waiting till I have 3 x the amount or should I just throw whatever money I have at it regardless of how small the amount is. Just to add, I have savings so I can afford to overpay.
Thanks in advance. This overpayment malarkey is making no sense to me!
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