Soldato
Hi all,
Took a 30 year mortgage out to get lower payments as I was planning to do overpayments anyway to reduce the term. The plan is to be mortgage free in 14 years (I'll be 42) which I believe is achievable.
Looking at my agreement, it says the following:
So am I right in thinking that if I pay off £5000, I will pay £150 in fees? But I'd save not having to pay interest on that £5000 over the term anyway, right?
It's only a 2 year fix that I'm on, so I'm more likely to slap down some more money at the end and not have an early repayment fee, which I'm guessing makes the most sense?
Am I right in thinking that putting down money after my fix, before I choose another product or jump to another mortgage company, it would reduce the monthly amount we pay instead of reducing the term? So we'd still be on a 30 year term but may be paying £100 less per month for instance, meaning that over the course of the year, I'd have another £1200 in our pockets, which could be put down as another overpayment when that deal ends etc...?
Hopefully that all makes sense. I think I have it right, but some kind of confirmation would be appreciated.
Lastly, is overpaying your mortgage still the done thing to do? It's the only debt that we have other than a 0% credit card, so it's the only debt we have that costs us more than what we've actually spent.
Thanks,
Andy
Took a 30 year mortgage out to get lower payments as I was planning to do overpayments anyway to reduce the term. The plan is to be mortgage free in 14 years (I'll be 42) which I believe is achievable.
Looking at my agreement, it says the following:
You can repay this mortgage early. If you repay part or all of the loan an early repayment charge will be payable at the time of
repayment, calculated as a percentage of the amount of the loan repaid. The percentages are set out in the table below along
with cash examples:
3% of the amount repaid
So am I right in thinking that if I pay off £5000, I will pay £150 in fees? But I'd save not having to pay interest on that £5000 over the term anyway, right?
It's only a 2 year fix that I'm on, so I'm more likely to slap down some more money at the end and not have an early repayment fee, which I'm guessing makes the most sense?
Am I right in thinking that putting down money after my fix, before I choose another product or jump to another mortgage company, it would reduce the monthly amount we pay instead of reducing the term? So we'd still be on a 30 year term but may be paying £100 less per month for instance, meaning that over the course of the year, I'd have another £1200 in our pockets, which could be put down as another overpayment when that deal ends etc...?
Hopefully that all makes sense. I think I have it right, but some kind of confirmation would be appreciated.
Lastly, is overpaying your mortgage still the done thing to do? It's the only debt that we have other than a 0% credit card, so it's the only debt we have that costs us more than what we've actually spent.
Thanks,
Andy