Overpaying on Interest Only Mortgage

Welshlassie

Rikki wrote: »

Interest only mortgages do not normally have this restriction. Check with your lender.

Mine does 10% max each year and early repayment charges over the course of the fixed rate

Rikki

Welshlassie wrote: »

Mine does 10% max each year and early repayment charges over the course of the fixed rate

That's because you are on a fixed rate deal. They don't want too much of the capital eroded as they can't charge the interest on it.

Ancalime

Hi
Just to explain further, I should have put this in my original reply, I was assuming as the op is on 6.9% he was on either a fixed rate or tracker mortgage as the SVR is currenly 7.00% with the new base rate taking effect from the 1 st Nov when it will become 6.50% . If lobster123 is on either of these he will be tied in and the 10% rule will apply even if he is interest only.:rolleyes:

when the product expires and a customer is on the SVR with Halifax they can pay off as much as they like no penalties.