Overpay now or when new Higher fixed rate kicks in?

My current fixed rate ends in October and my new one then kicks in which will be a higher rate. I have a lump sum I can pay off whilst avoiding early repayment fees. Trying to work out if its best to overpay now whilst I am on the lower rate, or wait until the higher rate kicks in. Paying off the lump sum now doesn't make much difference to the monthly payment on the new mortgage so just a bit torn on when best to do this


  • I would overpay now at the lower rate, you will then be charged less interest when the higher rate kicks in.

    I have 4 years left on my current fix so at the moment I am saving what I would normally overpay into a higher rate savings account then about 6-9 months before my fix is about to end I will over pay to reduce the balance for when the new mortgage takes effect.
  • Overpay now. Interest is calculated on a daily basis so the lower the mortgage balance the less interest you'll pay.
  • South_coast
    South_coast Posts: 4,779
    First Anniversary First Post Name Dropper Photogenic
    Agreed, the lower the balance the lower the interest, so get that balance down before the rate goes up!
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
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