Some simple questions...sorry

coldstreamalways

I bought a flat last year as a first time buyer and I am desperate to pay as much as I can off my mortgage whilst the mortgage is my only commitment-no husband, kids etc.

I would like to know how I can find out the end date for my mortgage, I have all the paper work Halifax sent to me at the start but I can't find it there.

I would also like to know how to make overpayments-can I just send them a cheque, do a BACS transfer, or go into a branch of Halifax?

I am currently putting £800 a month into a savings account (ISA is full) and I think the money may be better off going onto the mortgage (penalty rates dependent) but to be honest I find it all a bit intimidating!

I really really appreciate your help.

CA

dimbo61

Ring up the nice people at the halifax and ask !
Find out what rate you are paying on your mortgage and how long the deal is for.
Check if you are allowed to overpay and by how much each month/year
Then check what rate you are earning after TAX on your savings.
You may well be better off overpaying on the mortgage each month as it also
helps you build up more equity in your property and therefore avoid being in
negative equity as you bought at the hight of the property market and the
flats value may well have gone down.
You might have put down a large deposit and the value of the flat may have gone up but you still have a mortgage ( debt ) on your home so clearing your
mortgage ASAP is still the best plan and overpaying saves you lots of interest
GOOD LUCK

moominyak

Hi there coldstreamalways (brr!),

My mortgage is with the Halifax too, I don't know if you bank with them, but if you do you can't make a one-off direct payment online from your account to your mortgage (my only real gripe!).

You can do it at a branch (just give them your debit card and the roll no. of your mortgage and ask them to move x amount to the mortgage a/c).

I think if you want to set up a regular OP or increase your regular payment you can do that over the phone or in branch. I haven't got that far yet, it's just been a few odd overpayments for me!

If you don't bank with Halifax, you should be able to send a BACS/online payment straight to your mortgage a/c, just use the sort code and a/c number - I've just sent my first one from a new Smile a/c which I opened for this purpose, so I'll report if anything goes wrong! It should hit my mortgage on Tuesday but I'll give it til Thursday to see what happens to my balance.

The general consensus seems to be that having 3-6 months' salary-worth of savings set aside before tackling the mortgage is a good idea... I confess I've got about 1 month so far which is the most I've ever managed to save, I've not been struck by lightning yet, but I am intending to increase that amount, jic!

If you can really afford to throw the whole £800 at it each month, then I'd say go for it, but depending on your current "safety net" position you could perhaps save half and pay half towards the mortgage? Only you can decide that one!

Good luck and keep us posted on your progress

poppyoscar_3

Hi coldstreamalways!

Welcome!:hello:

I'm with the Hali too - I just go in and make overpayments each month - I like handing the cheque/money over!!!

Maybe when I know my new salary (just got promoted!) I'll do a monthly standing order, and then add other op's by cheque as and when.

Good luck with it!

PO xx