10 Year Fixed Rate 4.99% & Overpay Good Idea?

Phil_Gr

I am looking for a new deal, currently with C&G and they have a 10 Year fixed @ 4.99% i am tempted as i intend to over pay the mortgage

I am looking to take out 100K over 20 years, which give me a repayment of £659pm, but i am planning to overpay @ £1000pm (i have been paying this amount for the last couple of years)

the terms say i can repay up to 10% the loan value in any one year with no penalty

thoughts on the above please ?, good or bad idea ? especially as im planning to overpay

Thanks in advance

Phil G

allan673

good idea in my opinion, thats a good deal for a 10 year fix.

im doing the same as you, i got a 10 year fix of 5.15% in march with first direct.

people may say go for a tracker, but i personally like the security of a fixed rate. interest rates will rise eventually.

Mudbath

Hiya
I'm going to have a look at the C&G offer as we've decided to go for a 10 year fixed. We might give it a few more months to see if they come down further but i'd rather have the security of knowing what we'll pay every month. Just think. We've only got 10 years left so it will be nice to be able to budget for the rest of the mortgage then it's mortgage free. Can't wait!!

Gorgeous_George

Sounds good to me too. You won't know if it is a good rate for a few years yet.

Is there not an offset mortgage with a similar rate anywhere? This would give you easy access to your funds.

GG

Organic12

Phil_Gr wrote: »

the terms say i can repay up to 10% the loan value in any one year with no penaltyPhil G

I had a mortgage until recently with C&G. They charged me £10 to overpay though I was within the 10% penalty free allowance. They called it a handling fee. I'm not the only one who has had this http://forums.moneysavingexpert.com/showthread.html?t=1270329

I would ring them to confirm that you will not be charged £10 for each overpayment. If it applies to you then do it as one lump sum each year, not a bit each month.

Phil_Gr

Organic12 wrote: »

I had a mortgage until recently with C&G. They charged me £10 to overpay though I was within the 10% penalty free allowance. They called it a handling fee. I'm not the only one who has had this http://forums.moneysavingexpert.com/showthread.html?t=1270329

I would ring them to confirm that you will not be charged £10 for each overpayment. If it applies to you then do it as one lump sum each year, not a bit each month.

I have been overpaying for the last 4 years on my current C&G mortgage, to my knowledge i have never been charged any penalty fees. how do i check i will be very very upset if i find out this is the case.

brit1234

Good idea. Far better to know your monthly payments in the long run and overpaying is always good as it massively reduces your later payments.

It is the smart choice and I would recomend it to all.

inca_2

If you are just increasing your direct debit to overpay then I'm pretty sure it doesn't incur the £10 fee but I'm not certain so best to check with them. I have a friend there so I'll check with him too.

Phil_Gr

inca wrote: »

If you are just increasing your direct debit to overpay then I'm pretty sure it doesn't incur the £10 fee but I'm not certain so best to check with them. I have a friend there so I'll check with him too.

I have been paying with increased DD payments, but i will ring them back tomorrow and enquire about this.

does anyone know how the overpayments will affect the no penalty over 10 years, i have worked out that over paying by £350 per month will essentially cut a 20yr mortgage to 10yrs

shabbychicfan

sounds like a good deal to me, my fixed rate with the Abbey ends next Aug and would definitely bite their arm off if they offered me this sort of deal. Esp. if you are able to overpay.

Just a quick question if anyone could answer it, are fixed rate mortgages of this length portable or do you have to stay in the same house for that length of time? (sorry if this is a silly question!!).

Shabby

feisty1

Portabiity isn't determined by whether it's fixed or tracker etc, most mortgages nowadays are portable however you should stipulate this to yr adviser that this is one of yr requirements.