Overpayment Question

Zola.Zola. Forumite
1.9K Posts
Tenth Anniversary 1,000 Posts Photogenic Name Dropper
✭✭✭
Probably a silly question, but I will ask anyway.

Say you owe £150,000 on the mortgage. When you make the regular monthly mortgage payment of £500... it seems only about half of that comes off the actual debt figure owed, due to interest.

If you made an overpayment of £2000 out of the blue, would it be the same effectively, or would it knock £2000 off the total owed as its not in the standard mortgage timeline?
"Save like a pessimist, invest like an optimist" 
"The purpose of the margin of safety is to render the forecast unnecessary" 
"The borrower is slave to the lender."
"Energy flows where attention goes"

Replies

This discussion has been closed.
Latest News and Guides

£10-£50 London theatre tickets

For over 45 shows in January and February

MSE Deal

Join the 1p Savings Challenge 2022!

It should help you save £667.95

MSE Forum