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Overpayment Strategy
Ljc80_2
Posts: 113 Forumite
I'm just trying to figure out the optimal strategy for overpayments to reduce amount of interest I will pay
I'm on a 5 year fix at 4.59% which was probably a bad decision but whats done is done! (72k mortgage which is a 20% LTV)
I plan on overpaying at least £200 per month. According to overpayment calculator this would save me 24.8k in interest
Is there any benefit to making a one off overpayment (either instead of the regular payment or as well as) as soon as possible to reduce the balance quicker, id have thought getting the total balance down as quick as possible would be the way to save the most interest since its calculated daily, but the calculator has confused me?
I'm on a 5 year fix at 4.59% which was probably a bad decision but whats done is done! (72k mortgage which is a 20% LTV)
I plan on overpaying at least £200 per month. According to overpayment calculator this would save me 24.8k in interest
Is there any benefit to making a one off overpayment (either instead of the regular payment or as well as) as soon as possible to reduce the balance quicker, id have thought getting the total balance down as quick as possible would be the way to save the most interest since its calculated daily, but the calculator has confused me?
0
Comments
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not sure why you are losing £200 - it is showing an £800 interest saving by paying the additional 1k upfront isnt it? i don't know what calculator you are using but check with your paperwork, if the interest is calculated on your mortgage daily (i'm not sure if aany arent nowadays) then pay it off asap and you will start saving interest from as soon as it hits your account.Worst debt £31,746
April 2023 £16,610 (-47%)0
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