10 Year Fixed Rate 4.99% & Overpay Good Idea?

LULULU1

Sorry for sounding thick but exactly what does portable mean.

feisty1

allows a borrower to transfer the outstanding balance of an existing mortgage loan at the same rate when selling one house and buying another

bacardi.

Phil_Gr wrote: »

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.

Paying in one lump sum could end up, costing you more in interest than paying the £10 fee's. I suppose it depends on how much you want to overpay by and how often.

uzubairu

brit1234 wrote: »

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.

Or gets you mortgage free sooner.

Gazella77

I also like the security of knowing what you need to pay and having a 3 year fixed mortgage I've realised that due to all the charges it's better to fix for longer, as long as possible, provided you fix when the rates are low. My current is 5.6% and ends December next year and hopefully the rates won't go up tremendously by then as I'll be looking for a long term solution.

Now about the admin fees I am also very confused! This is why:

I pulled myself together to go to A&L and check my previous year ISA's rate, got a bit of a shock to find out it was at 3.5% rate! So transfered it to put into my mortgage (5.6%) but when I started asking questions at C&G branch I got furious - they couldn't tell me the difference between the capital payment and repayment, I asked if anything over 1000 is classified as a capital repayment (and hence require £10 admin fee) ad if I paid lets say 3 times £900 in e.g. 3 consecutive days I'd be free of admin charge. I can repay up to 10% annually not to be penalised.
They couldn't tell me, called some manager and was told that it depends how the head office will treat it as actually anything over normal monthly repayments may be treated as a capital overpayment depending how somebody at the other side will treat it:mad::mad::mad:

Again I have been overpaying regularly last year including a lump capital repayment above £1000 and was never charged any fee. Now I am tld that they can actually charge you for any overpayment depending on their mood.

Off I go to keep searching if that may be true.

But would be very grateful if you could say what you know about it.

Thanks and good luck Phil!

ceddy_2

I,m going for a 10 year fixed (4.99) with C&G/Lloyds. Our 2 year fixed rate (4.99) finishes in Feb and i'd rather know what i need to pay monthly and forget about it. With some over payments each year that'll be the end of our mortgage paid for. (fingers crossed, she wont want to move again)

LULULU1

We are also thinkiing of going on to the 4.99% with C & G. My question is that if we make overpayments can I borrow this back at some time as I have done with Northen Rock.

2latenow

On the O/P thing with C&G... in my experience as a customer they seem quite disorganised when it comes to know what can be done - capital repayment / overpayment / admin fee / no admin fee etc,.

I always phone their call centre and make my overpayments by debit card now -- it means I get to talk to the person that can see my account details and can confirm over the phone how they will treat it - I found that making payments at a branch or sending a cheque with a covering note with very clear instructions as to my intention was always ignored.

Broadly it seems that the £10 charge is only if they re-calculate your monthly direct debit payment. If you want to make an O/P but continue to make the same monthly payment then this charge doesn't seem to apply. As well as they 10% repayable each year without attracting an ERC, I think they also allow overpayments up to the value of your normal DD.

Gazella77

2laTENOW, i COMPLETELY AGREE WITH YOU, THEY REALLY DON'T KNOW WHAT THEY ARE DOING AT C&G, a complete joke!

I worries me that you said they treat as o/p anything up to the normal value of DD as not getting any clear answers in the branch I just paid in £900 as o/p but my normal monthly mortgage is around £700. I hope I won't get charged as I'll be furious I asked last year and they said it doesn't matter how much I overpay monthly as long as it doesn't come to 10% annually.
But then they changed their mind on charges already:mad:

As for payment holidays i you o/p they don't have a problem with it but if you haven't you need to negotiate.