Is it still worth over paying mortgage?
mallen
Forumite Posts: 91
Forumite
Hi all,
Split from ex recently and have had to sell house and buy another. Will be on a fixed rate for 2 years at 6.2%. Payments around £1400pm. Is it still worth over paying mortgage when I can or should I wait a few years until interest rates come down?
Split from ex recently and have had to sell house and buy another. Will be on a fixed rate for 2 years at 6.2%. Payments around £1400pm. Is it still worth over paying mortgage when I can or should I wait a few years until interest rates come down?
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Always worth overpaying as it reduces the overall interest you pay.I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing [email protected]. All views are my own & not the official line of Money Saving Expert.Lou~ Debt free Wanabe No 55 DF 03/03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free February 2021**** "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.***Fall down seven times,stand up eight*** ~~Japanese proverb.It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***Weight loss. ** 2 stone 7 lbs.***0
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I'm no good at maths but I'd have thought it was better to overpay when interest rates are high because if you decrease the balance, you decrease the amount of interest you pay.
This overpayment calculator is really good and also lets you compare to savings
https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/
Mortgage at 30: £204,750 (08/2020)
Current mortgage: £159,854 (08/23)
Goal: £145,000 by 02/2025
End goal: Mortgage free asap!0
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