Capital Repayment Question

fieldofdreams

Hi all!

With saving rates being so rubbish, I'm looking to pay some of my mortgage off this year.

In my mortgage paperwork it says that formal instructions should be given regarding how any capital repayments I make should be treated, as there are various options available - does anyone know what this means, and what these options are likely to be?

Thanks for your help

StuartGMC

Is this because you are on a part repayment and part interest-only mortgage?

I suggest you call lender to discuss the details e.g. repayment of capital from IO part or from the repayment part (if the above is correct).

Do ask about lump sum limits before charges, and also regular overpayments (you may be able to repay extra over several months without penalty whereas a lump sum may incur a charge).

Finally, do of course keep some emergency funds (3-6 months income typically, sometimes 9 months if job is contract/under threat).
Good luck.

fieldofdreams

Thanks Stuart

Its a repayment mortgage with Coventry - I've already got a monthly overpayment of £150 set up but am now looking to pay off a lump sum

I'll give them a ring to see what my options are

I will be keeping some cash back as an emergency fund as you say, job is fairly safe but who knows what rounds the corner!

Thanks again