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Paying off my mortgage?


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I have a question for all the mortgage experts out there. I have a 120k mortgage and I have a budget of around £800 to pay off this mortgage. I need an approximate answer to this question bearing in mind that C&R mortgages are 'front-loaded' for the interest on the loan.


Which of these two methods will pay the most off the capital on my mortgage:


Capital and repayment at £800 - how much capital would I pay off after 3 years?


Interest only at £600 a month and then overpaying by £200 per month (thus coming straight off the capital).


I do hope that makes sense......

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Do you mean you have £800 per month to overpay?

Have you got a flexible mortgage that allows you to do this penalty free?

It is probably in their product literature how overpayments are applied - are you charged a daily or yearly interest calculation?

An overpayment would surely go straight off the capital, which would then reduce the interest

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cheers for the responses. I am looking at exactly the same mortgage products (5.99% tracker but for my calcs I am assuming fixed as the principle applies whatever the rate).


I have £800 to pay my total mortgage costs. If I go Capital and Repayment then will I pay off as much capital as if I go interest only and overpay the difference between the C&R option and the Interest only option (ie about £200 p/m).


I think its going to pay off more capital if I go C&R according to

Mortgage repayment | Calculators | Guardian Unlimited Money

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