Lump sum payment

michno8

Hi , just need some advice please  . We have a mortgage that we could potentially pay half off . We have 10 years left on it . We are out of any deal and our current  rate of interest is 2.1 % . We dont know whether to pay off a lump some or pay extra each month . We have no other debt to pay off . 

getmore4less

Lump sum saves more interest in most cases over spreading it out.

For decent LTV 2.1% is high.
If you can pay off 50% you are looking at rate around 1%.

Review everything before paying anything off.

Ebe_Scrooge

I'd agree with the above.  A lump sum payment will immediately start saving you the most interest (assuming you can make overpayments without penalty, which you should be able to do if you're not on a promotional rate).

Once that's done, definitely shop around and see if you can switch to a cheaper deal - as highlighted by the previous poster, with a much lower LTV ratio you should be able to get a much better deal.

michno8

Thank you . We owe 44 on a 180000 property at present , so may there be potential to lower the rate . I've just kept with  the same mortgage lenders

getmore4less

with £44k  potentially £22k the savings won't be life changing.

which lender? don't they have better deals.

with that LTV should be looking very close to 1%-1.25%  small mortgage so no fee deals likely best
Over 5 years should save around £1k before the effect of the big overpayment