have i done right thing.

sassybooboos

just got new mortgage but only on a 2 yr fixed. ( is this long enough considering the present credit crunch thingy)

also how do i make overpayments on mortgage ( do i just send cheques when i have extra to pay onto it)

and would making overpayments be a good idea incase the credit crunch lasts longer than the 2 yrs so i can use it as a fall back if interest rates hit the roof.

homer_j_3

How long do you forsee yourself living at the property?

You normally send a cheque for one off payments or ask the lender to take more if regular.

sassybooboos

well i have moved 27 times in 15 years ( only bought 6 properties others were rental) so hopefully i will be staying in this house for a very long time, as this was the most stressful out of all the purchases.

Dan_Collins_2

IMHO 2 years is short. Also because the fee will be the same or more than a 3, 4, or 5 year deal. I think 5 years if you are 100% staying put!

homer_j_3

I would agree with Dan - look at longer products if you are looking to stay put.

sassybooboos

sorry probably not worded it right.

i have just moved into property but panicking maybe my mortgage wasn't good enough, daft really cause can't do anything about it now.

just hope interest rates not mega high when 2 years is up. thats why im thinking of overpaying for next 2 years just in case

owitemisermusa

I think (IMVHO) the balance is between overpaying like crazy to improve LTV and saving for the proverbial rainy day. Still trying to work out what the balance is for me personally.

setmefree2

Before overpaying your mortgage think about the following:-
1) You should have a reasonable level of emergency savings (at least three times monthly salary)...Your savings should be an account that beats your mortgage rate, so with the effect of tax on savings probably in an ISA. 6.5% is easy to get though some regular savers pay 10% and may be worth considering. Visit savings board.

2)It's the MSE message that you should fill an ISA before POYM See Martin's discussion on whether you should POYM. Also see various threads on MFW board.

3)Do you actually have a mortgage you can over pay. If so by how much?

4) Have you got your pension covered?

Come and visit the MFWers board we are a friendly bunch...:D

sassybooboos

can overpay on my mortgage only £1500 a year though.

i know this is really bad but aint got a pension yet, started one but couldn't afford to keep it going.