very simple Mortgage Question

futurefarmer

My mortgage repayments are pretty managable at the moments thankfully but i have still quite a large lump sum 2 pay off, Can i pay my mortgage monthly as normal (interest and tiny bit lump sum) and than say pay extra that could be taken directly off the lump sum ? Havent got huge savings but this is my priority, or would i have 2 say have €5-10000 in order 2 pay off part of the lump sum ?

Thanking u for ur help

unclebill98

Yes, its possilbe. Contact your bank to arrange up'ing your DD. This can be done for a set period or until you call in reduce it.

futurefarmer

Thanks very much i much appreciate it

chris85

if on a fixed rate you wont be able to overpay, only on variable.

corblimey

I looked into doing this a few months back, but my rate is so low (for how much longer?), it wasn't worth it, but as long as you're variable, you should be able to make as many lump sum payments or overpayments as you like.

One thing to check is that a lump sum reduces the term, not the repayments. If you're paying x per year for 10 years, paying a lump sum of say a year's worth should reduce the term by a year, but I think by default they use it to make it so that you're paying y per year for 10 years.