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Best possible way to pay back mortgage?

Options
Surely these things should be in the open

Should I lower the mortgage and then set a limit to overpayment each month 

Or just pay a set limit each month without an overpayment ?

I can see why brokers don't mention these things 

Comments

  • AgathaSquirrel
    AgathaSquirrel Posts: 259 Forumite
    Fourth Anniversary 100 Posts Photogenic Name Dropper
    I think it’s a personal decision based on your own circumstances. You need to know how much your mortgage provider will allow you to overpay. It’s usually 10%. 

    I’ve tended to go for a longer term and overpay. This gives me flexibility in my budget if something happened. I have smaller monthly payments as a result and an overpayment reserve. If one of us wasn’t working for any reason the mortgage is small enough for one of us to pay on our own and we could have a ‘holiday’ with the reserve if required. All of that being said I’m fairly committed to paying off the mortgage early so there needs to be enough within the 10% overpayment allowance to make a debt in the mortgage itself. Don’t know if that’s helpful but that’s my thinking.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgage of £68000
    October 2024 mortgage of £65000
    February 2025 mortgage of £63000
    March 2025 mortgage of £45000 and interest of £6.07 per day
  • Acidforums
    Acidforums Posts: 16 Forumite
    First Post
    Thank you, I think upon renewal I will rethink this approach more carefully  
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