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Making a lump sum payment to Halifax advice

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Hi, 
We recently found out we've been left a inheritance of £40,000 I would like to overpay my mortgage with this but I'm struggling to work out if this will reduce my mortgage term or just the monthly payment and what to.  Not really sure what's best. I've got 32 years left on my mortgage. Thank you 

Comments

  • pramsay13
    pramsay13 Posts: 2,144 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You will need to check you are allowed to overpay by that much, sometimes there are percentage limits. 
    You can then specify if you want it to reduce the term or the monthly payment. There are calculators online that will work it out for you. 
  • mylifemyrules
    mylifemyrules Posts: 106 Forumite
    Third Anniversary 10 Posts Photogenic
    Oh yes I'll give them a call may need to do it bit by bit. Thank you 
  • RelievedSheff
    RelievedSheff Posts: 12,690 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    With Halifax you can usually overpay 10% of your balance each year but you would need to check the terms and conditions of your particular mortgage.

    If you log onto your online account there is a section which shows you your remaining overpayment allowance for the year.
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