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Pay off mortgage early?

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  • Pay off mortgage early?

    Hi all,

    I have a 30 year mortgage for £69,000. I have 23 years left and the balance is £60,000. With Alliance and Leicester.

    I'm on a tracker (I think) and paying £345 per month.

    I've started doing some freelance work since January (whilst still maintaining my full time job) which is going quite well. I've made £4,000 (ish) up until now.

    As much as a "Round the world" cruise would be lovely! I'm trying to keep my sensible hat on.

    My questions are - should I overpay on my mortgage? If so - are there any penalties? Should I overpay as and when I can? Or should I save it up off and pay it off in bulk?

    This is new to me, any advice would be most appreciated!

  • #2
    Re: Pay off mortgage early?

    Hi if you are looking to overpay to reduce your mortgage balance it is worth looking at your mortgage paperwork to see if there are any penalties for overpayments. Some lenders allow you to make a 10% overpayment of the o/s loan amount every year without incurring any penalties.


    • #3
      Re: Pay off mortgage early?

      Hi there,

      If you can pay more on a monthly basis that will be better providing there are no penalties for overpaying.

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