Hi
After saving like crazy for the last few years, we’re now in the fortunate position that we can afford to pay a 10% lump sum off our mortgage (the maximum we can overpay with our bank - 10 year fixed).
However, a friend advised that it would be more beneficial to pay an extra 10% monthly instead. He says that you save more in the long run that way. Is this correct?
Surely it’s better to pay a lump sum off the capital & reduce the repayment amount enabling us to save more & hopefully pay off early once we have enough saved.
Are there any benefits to monthly overpayments vs a lump sum (other than access to savings) that I’m not seeing?
Thanks in advance!
After saving like crazy for the last few years, we’re now in the fortunate position that we can afford to pay a 10% lump sum off our mortgage (the maximum we can overpay with our bank - 10 year fixed).
However, a friend advised that it would be more beneficial to pay an extra 10% monthly instead. He says that you save more in the long run that way. Is this correct?
Surely it’s better to pay a lump sum off the capital & reduce the repayment amount enabling us to save more & hopefully pay off early once we have enough saved.
Are there any benefits to monthly overpayments vs a lump sum (other than access to savings) that I’m not seeing?
Thanks in advance!