Overpayment Query

MrsYox

Just after a bit of advice - and full of cold so not trusting my own calculations!! 

I have 6 months before my fixed term comes to an end and can afford to overpay by an additional £1000 each month for the next 6 months (which is within my overpayment limit). 

Do I pay the £1000 each month, or save it all up and pay it off the balance at the point of re-mortgage? LTV is 59%, so I don't think the over payments will change my LTV and bring me into a more favourable rate category. 

Is it going to have more impact each month or as a one off payment? Or doesn't it make a difference? My daily interest is about £9 so I feel like monthly payments will be more beneficial...but maybe I am understanding that incorrectly?

Thoughts appreciated! 

MorningcoffeeIV

It depends on your rate and whether you can gain more by putting it into savings.

If not, you want to make overpayments as soon as possible.

MrsYox

MorningcoffeeIV said:

It depends on your rate and whether you can gain more by putting it into savings.

If not, you want to make overpayments as soon as possible.

Thanks!!

Yawn

Have you started looking to remortgage yet? It would also help knowing what your next interest rate will be. I suspect a monthly saver (many paying 5% now) may be a better call.

dimbo61

If you have £1000 spare every month have  you  considered Offset mortgages !
Very popular on the Mortgage Free wannabe  for a reason

MrsYox

dimbo61 said:

If you have £1000 spare every month have  you  considered Offset mortgages !
Very popular on the Mortgage Free wannabe  for a reason

Thanks - finding a mortgage for our house is tricky enough (with land but not commercial in Scotland) so I couldn't find an offset that would be suitable, otherwise we would definitely go for one.