Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Is it worth overpaying mortgage?

(14 Posts)
notcitrus Fri 01-Mar-13 20:13:09

Definitely, unless you have other more expensive debt to clear first. And keep a.couple thousand easy to access for emergencies, eg car and boiler dying.

Using it to shorten the term, keeping payments.the same, will really pay off.

hippoCritt Fri 01-Mar-13 19:46:21

Our mortgage accounts allows us to withdraw overpayments back if we want, worth checking if yours does.

financialwizard Fri 01-Mar-13 19:27:27

I would recommend the route that trills has stated.

Overpaying your mortgage will ultimately save you many thousands over time.

Homophone Fri 01-Mar-13 19:27:14

Blimey just did calculator. £200 a month means we'd owe about £8k less in two years.

TheDoctrineOfSciAndNatureClub Fri 01-Mar-13 19:24:33

Yes, I would.

Trills Fri 01-Mar-13 19:24:10

If you have any debt, pay that off first, unless the interest you are paying on that debt is smaller than the interest rate on your mortgage (unlikely).

Then use the £200 a month to build up an emergency fund that you will not touch unless it is really an emergency (if you don't have one already). 6 months' wages is recommended.

Then after that, repay the mortgage.

Rowlers Fri 01-Mar-13 19:21:55

It will always make a difference, how much depends on the interest rate on your mortgage, how much you still owe and the length of your term. Generally, IME, the more you owe, the higher the rate of interest and the longer the term, the more you save by making overpayments.

duende Fri 01-Mar-13 19:19:39

Sorry forgot to convert the link
calculator

duende Fri 01-Mar-13 19:18:44

Yes, it makes a massive difference.

Try this calculator:
http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

WowOoo Fri 01-Mar-13 19:17:29

Def will make a difference in long term with interest rates for savings as they are now.
We did it when I was working F/T and am chuffed we did looking at statements.
At the time I felt I'd 'lost' my potential savings, but that's wrong.

heidihole Fri 01-Mar-13 19:14:26

Oh it will make a huge difference. Honestly I'm on my phone or I'd find a calculator online to show you but I'm sure someone will post one soon

SarkyPants Fri 01-Mar-13 19:13:00

Consider reducing the term of your mortgage if you can.

Alad Fri 01-Mar-13 19:11:42

Generally worth doing, so long as your mortgage lets you. There are various calculators online.

Homophone Fri 01-Mar-13 19:07:48

In June our five year fixed rate finished and out payments will go down from £1400 to £1200. We can afford to carry on paying old amount. Is it worth doing so - does overpaying £200 a month make a difference?

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now