Woolwich overpayment advice

Marie96

Hi

Unfortunately we are on a fixed rate mortgage (not offset) so not benefiting from the decreases. We are however in a position to make overpayments and would really like to maximise our savings due to the decreasing saving rates especially due to the relatively high rate on our mortgage 5.69%.

I have spoken to the Woolwich and they have advised that any o/ps under £500 are held in a type of limbo and are only actually taken off the mortgage balance in September each year. During that time they do reduce the balance for interest calculating purposes and you can request them back at any point. This is separate from the mortgage reserve account.

This seems a little too good to be true as it would obviously mean we could use our savings to offset but still have the protection of knowing we could get them back in case of any disasters. Has anyone come across this as I'm just a little wary of ploughing our money in?

Thanking you in advance for any help.

Welshlassie

Sounds great. I'd stick a few £100 in and then withdraw again to see how quickly you could get them back should you need them. If that is then suitable I'd drip feed money into the mortgage.

Marie96

Thank you Welsh Lassie - that is really sensible -i probably should have thought of it but I'm suffering from baby brain!!!