Mortgage payments

zarazara

I am considering taking out a small mortgage £20,000 for a home extention. repayment will be over 15 years.
I know everyone seems to say pay off the loan as quickly as possible but I wonder if its best not to overpay in the early years as inflation hasnt lessened the real value of the monthly amount. Thoughts please.

oldowl

Try visiting http://www.co-operativebank.co.uk/servlet/Satellite/1193206374759,CFSweb/Page/Bank-Mortgages where you will find a 25 year term FIXED at 5.95%, which can be repaid at any time with no penalties after ten years, and only a £140 exit fee. I have spoken to their service desk, and some sort of account (say a small savings account) is required since it is only open to "existing customers"

I remeber interest rates in the Thatcher era, and I think that, at best, they can only go down a small amount anyway

zarazara

Thanks forthe reply but i'm too oldfor a 25 yr mortgage.

minimike2

25 Year Fixed deals. Whatever next!

Although to not be tied in after ten is pretty good. That said...a lot can happen in ten years!

Tiddler_2

If you can comfortably afford to overpay then I would advise doing it from day 1. This way you will reduce the interest charged to a minimum.