Over paying your mortgahe

illbeurhuckleberry

Hi all
just reading about overpaying  you’re mortgage. I’m keen to do this as I’ve got my first mortgage at 45😱.
how can I make sure that overpayments come off the loan and not the interest?
Also am I better over paying monthly or saving this money and paying it in a lump sum before I renew my mortgage?

Any other tips are welcome.
Thank you 

Thrugelmir

By overpaying the mortgage you reduce the capital balance owed. This in turn reduces the amount of interest that you are charged. Interest being calculated daily and charged monthly. Think of overpaying the mortgage as a snow ball. Starts slowly but over time will become bigger and bigger. 

MovingForwards

Just pay it each month, quicker it's paid in, quicker the payment is allocated and the balance comes down.

I was a year younger when my purchase went through, started making overpayments before my first monthly contractual amount was due. Just received my annual statement today and I'm contemplating increasing my payment.

Trebor2013

Might seem a silly question but to follow on from Huckleberry's question...
Are you able to make 'monthly payments' without being committed to a DD? So for instance, just making regular monthly lump some payments.
Reason i ask is we're looking to do the same, but due to financial commitments, some months we have more surplus that others. So one month we may only chip off £50 but then the following month we could do £150?
TIA and again, apologies if a silly question.

ShowMeTheDough

Trebor2013 said:

Might seem a silly question but to follow on from Huckleberry's question...
Are you able to make 'monthly payments' without being committed to a DD? So for instance, just making regular monthly lump some payments.
Reason i ask is we're looking to do the same, but due to financial commitments, some months we have more surplus that others. So one month we may only chip off £50 but then the following month we could do £150?
TIA and again, apologies if a silly question.

Yes you can, I'm with Natwest and just make ad hoc overpayments when I want to. 

MovingForwards

Trebor2013 said:

Might seem a silly question but to follow on from Huckleberry's question...
Are you able to make 'monthly payments' without being committed to a DD? So for instance, just making regular monthly lump some payments.
Reason i ask is we're looking to do the same, but due to financial commitments, some months we have more surplus that others. So one month we may only chip off £50 but then the following month we could do £150?
TIA and again, apologies if a silly question.

Yes, jus set the lender up as one of your faster payment contacts then send whatever you want over each month.