Tracker Mortgages

GOLFER

Afternoon all

Quick bit of advise please.

If i take out a full term tracker for interest only and then say in 2 years time i want o convert the same tracker back to a repayment can i do this.

Im with C+G and probably going to take one of their deals ie +.89

many thanks

Golfer

rp8049

If it's a tracker, I'm assuming you can overpay by as much as you want? If so then you can make the decision to start making capital repayments whenever you wish?

I only ask because I got a bit confused at first when talking to First Direct yesterday. They described their offset tracker as an interest only product. I wanted capital repayment, but then the lady explained that all their offset are interest only, but you can overpay by as much as you want at any time, so what they do is ask you if you want to be making capital repayments, and then they will calculate for you how much you need to pay each month over the remaining mortgage term to ensure that you have paid it off in full by the end. So you can go interest free for a while if you need, and then ask them to let you know what payments you need to make to go back to capital repayment.

herbiesjp

rp8049 wrote: »

If it's a tracker, I'm assuming you can overpay by as much as you want? .

Not necessarily - most lenders will limit overpayment via Early Repayment Charges (ERCs) for a certain period of time.

There are some lenders that do not have these ERCs so if that is what you are looking to do, make sure you read all the details.

Hugbubble

rp8049 wrote: »

If it's a tracker, I'm assuming you can overpay by as much as you want? If so then you can make the decision to start making capital repayments whenever you wish?

Depends on the T&Cs- overpayments on my 2 year tracker with the RBS are limited to 10% of the monthly payment. Of course, I'm not on interest only, if that makes any difference