Overpayment help

jules73_2

Hi all

My current fixed deal will end in December (repayment), and I'm allowed to overpay by 10%. I have not made an overpayment before.
Can I make this 10% payment in one lump some of £7500? I also plan on making overpayments once the fixed deal ends of £500/month.
I do have cash ISAs, but I think I'll keep hold of them.
Do I want to arrange for the overpayments to reduce the term of the mortgage and keep my standard repayments the same Will they give me a choice of options?

I'm thinking about staying on the SVR for a while when my deal ends because the current deals don't seem worth fixing. Not on 75k anyway.

temba

Your situation sounds like mine.

My mortgage is currently at 64K and I have about 20K in an ISA. There has been no point overpaying whilst my ISA is getting over 6% and my fixed rate is 4.79%, but come November when it runs out I plan to chuck a lump sum at it and reduce the mortgage considerably.

I might stay on the SVR too. All the decent fixed rates seem to have such high arrangement fee that it just doesn't seem worth it on a mortgage that will hopefully be less than 50K.

jules73_2

Very much the same as you.
It just doesn't seem like it's worth fixing. I can't see rates going up, and hopefully fix next year if rates come down.

ailuro2

fwiw we do a combination of overpayments - we arranged to pay an extra £200 per month every month and that comes off automatically, but we also throw in any extra money we have in lump sums when we have them.