mortgage over payment

15
Posted 6th Apr
hi,iv'e bought a house,and paid 10% deposit,i can only pay over payments of 10% a year,iv'e now sold my other home,should i wait until the 2 year fixed rate is over (12 month)or should i pay the 10% now.thanks for any help
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marian3a06/04/2020 14:18

I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my …I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.


you only needed the first 5 words.

the rest is rubbish.
Pay the 10% over payment now and next year pay another 10% that's what we did with our Virgin mortgage, every year in the first week of January the extra payment allowance was refreshed for us.
We ended up paying our 25 year mortgage of 11 years early.
Edited by: "PaulandPam" 6th Apr
marian3a06/04/2020 14:18

I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my …I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.


LOL!
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Does your mortgage have an offset account? If so use that. Otherwise you are probably allowed to overpay a small amount without penalty. I would probably wait for the fixed part to end and pay it off without penalty then.
Edited by: "paul123edwards" 6th Apr
paul123edwards06/04/2020 12:46

Does your mortgage have an offset account? If so use that. Otherwise you …Does your mortgage have an offset account? If so use that. Otherwise you are probably allowed to overpay a small amount without penalty. I would probably wait for the fixed part to end and pay it off without penalty then.


no offset account,but i can pay 10% today,but not sure if thats the best thing to do cheers
Pay the 10% over payment now and next year pay another 10% that's what we did with our Virgin mortgage, every year in the first week of January the extra payment allowance was refreshed for us.
We ended up paying our 25 year mortgage of 11 years early.
Edited by: "PaulandPam" 6th Apr
if you pay 10% today - the interest will be calculated on teh remaining balance (so taking into account your overpayment)

given you are in a fix period, i would recommend you pay off the 10% asap to benefit - and for the rest,well you got to do the math on the low interest rates, penalty charges, and possibly move to a new mortgage with overpaying the whole lot and see if it is worth the hassle for your situation.
Over pay ASAP.
Your interest charge will be more than you could get from savings.
Thanks for your help guys.will pay 10% today
I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.
marian3a06/04/2020 14:18

I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my …I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.


LOL!
marian3a06/04/2020 14:18

I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my …I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.


you only needed the first 5 words.

the rest is rubbish.
Pay it ASAP but make sure you call them and ask what the 10% is based upon - is it current amount left to be repaid (mine) or the opening balance. Also, check when the 10% runs from and to - mine is a rolling 12 month period, so, I could pay today and then next year. But - year 2's payment would be less as my balance would have reduced.
always pay off your mortgage as quickly as you can. simple rule of thumb.
marian3a06/04/2020 14:18

I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my …I’m not a financial advisor but I wouldn’t recommended you to pay 10% in my opinion is better to buy a stock that you believe will rise in value over a two years time.


Although this might be a good time to take a look at stocks, if the proceeds of the second house represents the bulk of the OP's savings, it would be a very bold move to invest 100% of it in the stockmarket without taking careful note of the OP's age, circumstances and attitude to risk.
hashman06/04/2020 12:51

if you pay 10% today - the interest will be calculated on teh remaining …if you pay 10% today - the interest will be calculated on teh remaining balance (so taking into account your overpayment)given you are in a fix period, i would recommend you pay off the 10% asap to benefit - and for the rest,well you got to do the math on the low interest rates, penalty charges, and possibly move to a new mortgage with overpaying the whole lot and see if it is worth the hassle for your situation.


If a mortgage term starts from Feb, is it better to pay the 10% at the start or 6 months in?

The 10% is that based on the current balance when you make the lump sum or the balance at the start of each term year?
rimalpatel00706/04/2020 20:17

If a mortgage term starts from Feb, is it better to pay the 10% at the …If a mortgage term starts from Feb, is it better to pay the 10% at the start or 6 months in?The 10% is that based on the current balance when you make the lump sum or the balance at the start of each term year?


the mortgage started last feb,and we have just paid 10%,off the balance as it stands now. they wanted £1300 in fees to pay 60% off,we can negotiate new terms next feb,cheers
rimalpatel00706/04/2020 20:17

If a mortgage term starts from Feb, is it better to pay the 10% at the …If a mortgage term starts from Feb, is it better to pay the 10% at the start or 6 months in?The 10% is that based on the current balance when you make the lump sum or the balance at the start of each term year?


Depends on the mortgage, ours is worked out daily. So to pay off ASAP. If you can find a savings account at 2.5% and your mortgage is 2% obviously it is better to chuck it into a 2.5% savings account.
Edited by: "backyard" 6th Apr
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