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  • FIRST POST
    • chelseablue
    • By chelseablue 17th Mar 17, 10:25 AM
    • 2,201Posts
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    chelseablue
    Unlimited overpayments?
    • #1
    • 17th Mar 17, 10:25 AM
    Unlimited overpayments? 17th Mar 17 at 10:25 AM
    Currently with Halifax, fixed rate until March next year, overpayments capped at 10% per year

    Just wondering, are there any mortgage providers that offer fixed rates where you can make unlimited overpayments?
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
Page 1
    • chelseablue
    • By chelseablue 17th Mar 17, 10:35 AM
    • 2,201 Posts
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    chelseablue
    • #2
    • 17th Mar 17, 10:35 AM
    Is there such a mortgage?
    • #2
    • 17th Mar 17, 10:35 AM
    Currently with Halifax on a fixed rate, ends March next year.


    Overpayment cap of 10% a year.


    Are there any mortgage providers that offer fixed rates where you can make unlimited overpayments?
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • getmore4less
    • By getmore4less 17th Mar 17, 10:40 AM
    • 29,803 Posts
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    getmore4less
    • #3
    • 17th Mar 17, 10:40 AM
    • #3
    • 17th Mar 17, 10:40 AM
    Fixed rate offset allow unlimited reduction of the debt that accrues interest, same thing in practice.
    • Rafter
    • By Rafter 17th Mar 17, 10:52 AM
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    Rafter
    • #4
    • 17th Mar 17, 10:52 AM
    • #4
    • 17th Mar 17, 10:52 AM
    Some providers do Early Repayment Charge (ERC) free fixed rate mortgages too.


    Particularly if you are planning to make a very significant overpayment, watch our for paying big up front fees too - you might find these are almost as much as the interest you will be paying and therefore not offer a great deal that they first appear.


    R.
    Smile , it makes people wonder what you have been up to.
    • ReadingTim
    • By ReadingTim 17th Mar 17, 10:54 AM
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    ReadingTim
    • #5
    • 17th Mar 17, 10:54 AM
    • #5
    • 17th Mar 17, 10:54 AM
    Doubt it - the mortgage provider is taking a risk that rates could rise during the fixed period, and if they did, they'd be losing money/profit on lending it to you at that fixed rate. Limiting overpayments limits their losses during the fixed period, which is why they're imposed - mortgage providers exist to make money for their shareholders after all!
    • kingstreet
    • By kingstreet 17th Mar 17, 11:12 AM
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    kingstreet
    • #6
    • 17th Mar 17, 11:12 AM
    • #6
    • 17th Mar 17, 11:12 AM
    I can think of one with no ERCs on its fixed rates, so they aren't great and another with 20% ERC-free overpayment facilities.

    The other option is to take a mortgage on a part-fix, part-tracker basis where the tracker has no ERCs and repay that part of the mortgage without penalty when you want.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Westminster
    • By Westminster 17th Mar 17, 11:19 AM
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    Westminster
    • #7
    • 17th Mar 17, 11:19 AM
    • #7
    • 17th Mar 17, 11:19 AM
    I've merged your two threads together as they are essentially the same question.
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • erin110
    • By erin110 17th Mar 17, 11:40 AM
    • 96 Posts
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    erin110
    • #8
    • 17th Mar 17, 11:40 AM
    • #8
    • 17th Mar 17, 11:40 AM
    There is a currently a lender that is offering penalty free fixed rates so this will allow you to make unlimited overpayments.
    I am a Mortgage Broker
    This site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Glover1862
    • By Glover1862 17th Mar 17, 12:48 PM
    • 209 Posts
    • 117 Thanks
    Glover1862
    • #9
    • 17th Mar 17, 12:48 PM
    • #9
    • 17th Mar 17, 12:48 PM
    Try Coventry Building Society, their flexx product allows this, you pay a little extra but not much.
    • dano17439
    • By dano17439 17th Mar 17, 2:20 PM
    • 250 Posts
    • 200 Thanks
    dano17439
    My current Barclays mortgage offers unlimited penalty free overpayments. However it was an old ING Direct mortgage which Barclays took over. Doubt many exist like this now
    • chelseablue
    • By chelseablue 17th Mar 17, 2:38 PM
    • 2,201 Posts
    • 2,699 Thanks
    chelseablue
    Thanks all.


    Its not an issue at the moment (don't think I'll be overpaying £24,000 this year!)


    But when our son goes to school and the childcare fees drastically reduce hopefully we'll be overpaying quite a bit
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
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