Mortgage Overpayments Explained - Should you Overpay on Your Mortgage?

If you have a mortgage or are currently thinking about applying for a mortgage, you may be wondering if it's worth overpaying to shorten the length and save money on your deal. We sat down to explain what overpayments are and if they can help you save money 💸

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#overpayments #mortgagetips #mortgages

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

[atomic]

I did this with my 30yr loan and ended up finishing it off in 7 or so years. Granted, I got a better job halfway through and started overpaying by nearly 50% per month, but the interest savings was worth it.

[dylanbuckle]

Really useful and straightforward. Thank you 🙏

[kevinomalley]

Nice video - new subscriber! Trying to work out whether to start making overpayments on mine. But there’s a lot of nuanced factors involved, not least a move to Spain!

[guyr]

My first reaction to this is why have a 35 year mortgage if your going to overpay by £200 a month. What would the 30 yr mortgage have cost?
Your overpayments can actually be used to bring the monthly payment down rather than reduce the term. My building society will adjust this automatically if the payment exceeds £500 in one go. Otherwise it uses the overpayment against the capital but adjusts the mortgage in January. The term stays the same. Would be interesting if you could calculate and show the pros and cons of both repayments. Which saves you more in the long run

[AliHussain-noyl]

Hi, I wanted to know is it better to pay the overpayment at the end of the year in one lump sump or spread that same amount over each month?

[pascaljoly]

I don’t understand something. I’ve been overpaying my mortgage for many years. But my monthly payment has only come down dur to lower interest rates as I fixed the rate when they were lower than when I took in the loan. So now I’m paying lower amounts due to lower interest rates but the length of my mortgage hasn’t changed. How is this possible? The length should have come down. The person I spoke to at the bank was unable to explain why, which is concerning to me.