What is the most optimal way to become mortgage free?
in Mortgage-free wannabe
7 replies 171 views
I have a standard 25y mortgage with a 5y initial fixed period. Is it better to
1) overpay as max allowed by t&c every year
2) not overpay and put the savings down as a deposit on remortgage
As I understand remortgaging, there's no limit to what you can deposit when you remortgage so would it make more sense to save as much as possible in 5y time and then use that as a deposit when the time comes to remortgage? Or do people tend to overpay annually and chip away slowly like that?
I'm not quite clear on overpaying, does that decrease the monthly payment amount but the length of the mortgage stays the same or is it the other way around?
I'm interested to hear from people who are close to being mortgage-free or already are, what have you done that worked?
Latest MSE News and Guides
Martin and MSE campaign win
April's 20% energy price guarantee hike postponedMSE News
Childcare budget boost
More support for children from nine months and those on Universal CreditMSE News
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
Stocks and Shares ISA | 2020-2021 Investments | Vanguard UK Investor (vanguardinvestor.co.uk)
Mortgage Repaid on 20 April 2021
Click here to visit my Mortgage Free Wannabe Diary