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    • Lizbuff89
    • By Lizbuff89 7th Jan 18, 9:59 PM
    • 3 Posts
    • 1 Thanks
    Lizbuff89
    Please can anyone help ...I have a repayment mortgage fixed for 10yrs @ 3.89%. Each January whatever the balance is Iím allowed to pay 5% overpayment per year. Iím down now to 6 years & 1 month & £18719.34 left. Iíve been overpaying but Iím not allowed to reduce the length of the term. They reduce my monthly payment. Each month I put £100 + whatever they reduce it by into an account the each January I pay my 5%. This leaves me with some money in the account & was planning on being able to build that up so that by the time Iím say 2 years off completing my term I could take it out and pay it off early. What I want to know it am I wasting my time overpaying or should I do it anyway? Iím very confused. It wasnít explained clearly to me as I thought I could reduce my term by paying 5% over each January cos if not then whatís the point? Please help
    • tunstallted
    • By tunstallted 3rd Feb 18, 9:42 AM
    • 1 Posts
    • 1 Thanks
    tunstallted
    Are mortgage payments counted as part of your overpayment allowance??
    • Veld47
    • By Veld47 16th May 18, 9:59 AM
    • 1 Posts
    • 1 Thanks
    Veld47
    Overpaying
    My question is by how much should I overpay? The more the better? Should I reduce the payments or the term?
    Currently I have just started overpaying by 10% but my mortgage company said I can overpay up to £10000 over the year if I want with no additional fee. I have one year left on the fixed rate.
    Currently I am also paying off an interest free credit card, into an ISA and premium bonds (as easy access to cash). Wondering if I should continue to have savings in different places?

    Thanks in advance for your advice.
    Last edited by Veld47; 16-05-2018 at 10:02 AM.
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