Confused about mortgage...

smytt

Hi, was looking for some advice about mortgages, I'm a bit confused and not sure how it all works. At the moment I have an interest only mortgage, when i took it out it was fixed rate. Now the period it was fixed for is over. I have spoken to the mortgage advisor I used the last time and he says that there are no deals for me just now, and i could take advantage of the low interest rate.

Can I call my mortgage provider and ask them to chande my direct debit to take a certain amount every month or do i personally save the money im not paying to my mortgage payments??

Any advice would be great.
Thanks Smytt

caracal_77

I guess your question is regarding overpayments, after your fixed term ends and interest rate drops. You need to check with your mortgage provider (or your mortgage papers) if they allow overpayments and by how much. Some mortgages have restrictions on overpayments and you pay a penalty if you don't keep inline with those restrictions. If your mortgage allows overpayments, you can usually ask your mortgage provider to keep your payments the same as before (or higher), or overpay yourself monthly or by a lump sum (again, depends on what your mortgage allows).