Hi
We've been overpaying our mortgage for about 2 years now and (with the tracker rates so low) our overpayment is now about one third of the monthly payment. We had specified a fixed sum payment every month, to be made up of the mortgage payment and an overpayment.
It used to be that the mortgage was about 90% of the fixed sum, and the overpayment was about 10%. Now it is about 66% mortgage / 33% overpayment.
After protracted discussion with Ulster Bank they tell us that, if we continue with our current level of overpayment the mortgage will be paid in full in 20 years.
We don't have this in writing however, as this is a 30 year mortgage originally.
so I have 2 questions:
1) Would it be better to set the term rather than make overpayments, if the end result is roughly the same? Overpayments come off the "capital amount" we're told, and are different to mortgage payments (???)
2) Is there any advantage in terms of TRS? We are in year 3 of our mortgage.
Thanks!
We've been overpaying our mortgage for about 2 years now and (with the tracker rates so low) our overpayment is now about one third of the monthly payment. We had specified a fixed sum payment every month, to be made up of the mortgage payment and an overpayment.
It used to be that the mortgage was about 90% of the fixed sum, and the overpayment was about 10%. Now it is about 66% mortgage / 33% overpayment.
After protracted discussion with Ulster Bank they tell us that, if we continue with our current level of overpayment the mortgage will be paid in full in 20 years.
We don't have this in writing however, as this is a 30 year mortgage originally.
so I have 2 questions:
1) Would it be better to set the term rather than make overpayments, if the end result is roughly the same? Overpayments come off the "capital amount" we're told, and are different to mortgage payments (???)
2) Is there any advantage in terms of TRS? We are in year 3 of our mortgage.
Thanks!