Mortgage on a 30 year term, two years in. We overpay already but just arranging to overpay more as both had decent pay rises. Have just fixed for five years on a brilliant rate.
When I use the overpayment calculator it seems that the term just reduces in a consistent way i.e. doesn’t speed up - which is what I thought it would do the more I increase the overpayment due to the mysterious “compound interest”. How does it work - does it speed up? Someone explain it to me like I’m five please? I guess when all is said and done just overpay what you can afford is going to beneficial no matter what?