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  • FIRST POST
    • photoman4
    • By photoman4 5th Mar 18, 1:33 PM
    • 8Posts
    • 2Thanks
    photoman4
    Paying off Some of the Mortgage
    • #1
    • 5th Mar 18, 1:33 PM
    Paying off Some of the Mortgage 5th Mar 18 at 1:33 PM
    Hello All
    My son is thinking of paying off some of his mortgage. Can you help please with the basic "How to choose whether to do so or not?.
Page 1
    • ceh209
    • By ceh209 5th Mar 18, 1:50 PM
    • 759 Posts
    • 497 Thanks
    ceh209
    • #2
    • 5th Mar 18, 1:50 PM
    • #2
    • 5th Mar 18, 1:50 PM
    What's the interest rate on the mortgage?
    What interest rate could he get on savings, or rate he has on any other debts?
    Does he have rainy day savings?
    Excuse any mis-spelt replies, there's probably a cat sat on the keyboard
    • photoman4
    • By photoman4 18th Mar 18, 3:41 PM
    • 8 Posts
    • 2 Thanks
    photoman4
    • #3
    • 18th Mar 18, 3:41 PM
    • #3
    • 18th Mar 18, 3:41 PM
    Sorry I have not been well, I will get back to you. Many thanks
    • photoman4
    • By photoman4 30th Mar 18, 1:14 PM
    • 8 Posts
    • 2 Thanks
    photoman4
    • #4
    • 30th Mar 18, 1:14 PM
    • #4
    • 30th Mar 18, 1:14 PM
    Hello CEH209 I am back. My son tells me the following,
    Balance £77,000
    Interest 2.29 %
    term 5 years ends 2021 estimated repaid 2040.
    He mentioned that he may repay some of it, what do you think? He also says thank you.
    Have a good Easter Weekend
    • Thrugelmir
    • By Thrugelmir 30th Mar 18, 1:24 PM
    • 58,914 Posts
    • 52,233 Thanks
    Thrugelmir
    • #5
    • 30th Mar 18, 1:24 PM
    • #5
    • 30th Mar 18, 1:24 PM
    Certainly no harm in making overpayments. If he has money spare. As will reduce the debt owed and therefore the interest charged. Resulting in a reduced mortgage term. How much is he proposing to pay?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • dimbo61
    • By dimbo61 30th Mar 18, 9:28 PM
    • 9,911 Posts
    • 5,334 Thanks
    dimbo61
    • #6
    • 30th Mar 18, 9:28 PM
    • #6
    • 30th Mar 18, 9:28 PM
    I think " term 5 years ending 2021" you mean your Son has a 5 year fixed rate deal.
    He may have to pay Early repayment charges if he overlays more than 10 percent in any one year.
    He needs to read the terms and conditions of his mortgage offer or give the mortgage centre a call.
    Overpaying every month will help clear the mortgage quicker and save interest.
    He could also consider a regular saver such as Nationwide 5percent saver
    • photoman4
    • By photoman4 12th Apr 18, 7:57 PM
    • 8 Posts
    • 2 Thanks
    photoman4
    • #7
    • 12th Apr 18, 7:57 PM
    • #7
    • 12th Apr 18, 7:57 PM
    I have put your replies to him and he is going to make a decision. He asks me to say thank you on his behalf. Many thanks
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