Breatheasy – my mortgage allows (with a £30 admin fee) for me to pay a lump sum in January of each year to reduce the term.
It also allows (in addition or instead of) a £500 or more overpayment which reduces interest as of the very next day made a frequently as I like.
Jambalaya is spot on I think as I’ll go through the year saving then (and if) I get to £1000, I’ll take £500 and overpay. In Jan I’ll then pay half saved the previous year to reduce the term, leaving the rest to add to the regular savings for Holiday and unforseen events etc. – And repeat annually…
Jambalya, already got some direct debiting in premium bonds, 12% return this year 🙂
I think that sounds sensible. Hope fully in 15 years my monthly payment will be smaller / an a few years will have come off.
Edit: This makes more sense when you know 20% of salary is held back until January and then 0 – 20% is release in my Jan payslip depending on perfomance.