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Overpayment question
Timothyayre
Posts: 17 Forumite
We owe about 200K on our mortgage over 32 years. Our rate is 2.05 and is fixed until Nov 2025. We are thinking of overpaying about £250 each month so that our LTV is as good as possible in the Autumn of 2025. Is there any reason why this isn't a good idea?
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Comments
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Depends on what the LTV is now, do you have other places where that money is better deployed (eg: pension contributions with tax relief, S&S ISA, etc ), will you need access to this cash, do you have sufficient savings for a rainy day, etcOnce you hit 75% LTV, the rate gains are minimal after that.0
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What rate could you get on that money in savings? It shouldn't be hard to beat your mortgage rate, particularly over the coming months.Timothyayre said:We owe about 200K on our mortgage over 32 years. Our rate is 2.05 and is fixed until Nov 2025. We are thinking of overpaying about £250 each month so that our LTV is as good as possible in the Autumn of 2025. Is there any reason why this isn't a good idea?
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