Dec
29
MarketingPerson2007 asked:
Basically I have £10k saving, and I would also like to overpay my mortgage each month.
I am currently on 2 year fixed mortgage with the flexibility of overpaying 10% a year. The interest is calculated daily.
My question is would it be better to initially pay the £10k in one sum before I start paying overpayments, or put that towards my monthly overpayments?
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Basically I have £10k saving, and I would also like to overpay my mortgage each month.
I am currently on 2 year fixed mortgage with the flexibility of overpaying 10% a year. The interest is calculated daily.
My question is would it be better to initially pay the £10k in one sum before I start paying overpayments, or put that towards my monthly overpayments?
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It depends on the mortgage contract.
There might be penalties for paying over the 10%.
There might be a “FEE” for making an “extra payment”.
The best would probably be to increase your payment by 10%.
I would keep the 10K in the bank, and collect interest on it, and pay the interest earned as a extra towards the mortgage principal.