can you pay a large amout towards your mortgage

fluffykittens

I will be getting some inheritance in December that I want to pay off some of mortgage off with, can you just make a large payment off your mortgage?

cheers

michael19_2

It depends on a couple of things

• If you are in a discount period some banks only allow a certain percentage normally 10% of outstanding balance during the period
• Once you pay it into your mortgage you may struggle to get it back easilly

Im sure there are other pros and cons but thats the two main ones I can think of

Michael

tanith

It will also depend on who you are with and what their terms and conditions are... Nationwide allow overpayment of up to £500 per month others don't allow it... you can take any overpayments back anytime if you want to with them also.

fluffykittens

im with Alliance and Leicester and I come off their fixed mortgage December

feisty1

if you refer to your mortgage documents for easy reference.... Key Facts Illustration (KFI) go to section 11 (see below) This will explain re' over payments..

11. What happens if you want to make overpayments?

I am a Mortgage Adviser

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.

feisty1

Our posts must have crossed, if you come off yr fixed rate and go on to svr you should be able to apply a lump sum without penalty, however their are other options open to you which may be more attractive & worth considering ie offset mortgage......take the advice of an independent adviser...it is good timing for u!

I am a Mortgage Adviser

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.