How much do you need to overpay by to make a difference? Mine is 630ish a month and I've rounded it up to 700 and pay that. Will it make a difference in getting it down quicker?
I think it can do, depends how long the mortgage is set for and what interest you're paying, etc. Not that I'm an accountant, speak to one of them, it's probably worth the cost or people wouldn't use themHow much do you need to overpay by to make a difference? Mine is 630ish a month and I've rounded it up to 700 and pay that. Will it make a difference in getting it down quicker?
Spot on @TDA each lender has different methods of charging, collecting and applying interest. Some need a minimum payment for it to be allocated and when. If the lenders FAQ page doesn't give you the answer Bernie by all means give me a shout.It will make a difference whether the interest is calculated daily, monthly or annually. You also need to ensure that I overpayment is applied to the balance immediately not annually.
I think @Hillyboy61 is the one to aski.
How much do you need to overpay by to make a difference? Mine is 630ish a month and I've rounded it up to 700 and pay that. Will it make a difference in getting it down quicker?
It will make a difference whether the interest is calculated daily, monthly or annually. You also need to ensure that I overpayment is applied to the balance immediately not annually.
I think @Hillyboy61 is the one to aski.
I got a year left of my fixed rate, any advise if I should try and stick with a fixed rate or tracker?
Are you really asking whether if you pay more than you have to you will reduce the term of your mortgage?How much do you need to overpay by to make a difference? Mine is 630ish a month and I've rounded it up to 700 and pay that. Will it make a difference in getting it down quicker?
That's been said for quite a few years now. There will be no Brexit and so things will stay the same. #welshandeuropeanI'd go fixed. The next few years are very uncertain.
Are you really asking whether if you pay more than you have to you will reduce the term of your mortgage?
Like a few people have said, it very much depends on the small print of your present mortgage deal. Your original mortgage offer should have all of the relevant information regarding how interest is charged and the effect of making overpayments.No I'm really asking if the amounts I've mentioned will make a *significant* difference.
Like a few people have said, it very much depends on the small print of your present mortgage deal. Your original mortgage offer should have all of the relevant information regarding how interest is charged and the effect of making overpayments.
Typically if you on a variable rate (that is it has been many years that you’ve had the mortgage) then you should be able to pay off any amount. Just be aware that if you do direct debit, some lenders will periodically review the minimum amount you will pay each by assessing the principle over the existing term.
I got caught out by that so had to manually work out the ever changing (lowered) monthly direct then pay the difference I actually wanted to pay off each month...anyways I am now mortgage free
Your lender/banking practice I’m sure will be different so always read the small print!
Banks are crazy fools!
I know, am syill digging out the paperwork. It's a 10% limit but not sure how the interest is charged.