Fixed rate mortgages with unlimited overpayments.

patchwork_cat

I would like to know if anyone knows who is offering flexible fixed rate mortgages at the moment? I am after a product with unlimited overpayment facility or very generous overpayments allowed. Thank you.

supersunshine

I think the Woolwich let you overpay by 10% a year on a fixed rate, also the coop says you can too but doesn't seem to have a limit put on their site so may be worth looking into.

RufusA

A lot of fixed rate mortgages appear to allow around 10% overpayments a year, some in addition allow a fixed amount each month for example Alliance and Leicester allow £500 a month Feb - Dec and 10% outstanding in Jan!

If you are looking for larger overpayments then Ipswich Building Society might be a good bet - as they allow upto 50% of the initial mortgage in overpayments without penalty, and reasonably competitive product.

However you will need to check small print as if you are planing on making large overpayments. How frequently interest is calculated and whether you can use the overpayments as a draw down / payment holiday may be important factors to consider.

If unsure, get professional advice!

HTH - Rufus.

supersunshine

Sorry forgot to say the above are offset fixed rate mortgages so even better :-)

patchwork_cat

Thank you - I was aware of the usual 10% O/P allowed on a lot of fixeds, what I am really after is one that allows a large lump sum overpayment. I am due an inheritance, but in this market goodness only knows how long it will take to come through. It won't be enough to clear my mortgage, but just over 1/2 of it.

My fixed is nearly at an end and I like the certainty of fixing .

My 2 options are a fixed with flexible overpayments allowed or 2 mortgages - 1 on SVR and 1 on fixed and pay off the SVR once lump sum comes through.( Know they would have to be same organisation) Anyone any other suggestions?

Am also getting advice, but always like to know if they are recommending best deal - I know I am a mistrusting so and so, but believe in doing my homework !! Forgot to mention my LTV is 40% if that makes a difference.

supersunshine

I would definitely look into the offset fixed rates then where you can make overpayments. That way you could pay a lump off and keep some for a rainy day which can also be saving you interest - best of both worlds :-)

seikothrill

Try the Northern Rock flexible fixed rate products. You can make unlimited overpayments without charge within the fixed rate period provided you do not fully redeem your mortgage. Example - Mortgage 100000 Repay 99999 without penalty. At end of fixed rate you can fully redeem.

The above is why my broker recommended I took out my recent Northern Rock mortgage.

supersunshine

These companies do fixed offset mortgages so might be an idea so you can pay some off and keep some aside but still benefit as I said above:

Coventry BS
Leeds BS
Yorkshire

I have a whole spreadsheet of fixed and tracker offset mortgages, think I am getting a bit addicted to finding a good mortgage - better get out in the garden to get a life lol

patchwork_cat

Thank you super - the 46K is with some already pulled off for spends. I know that if I don't pay off as much of the mortgage as possible I will spend it! That is why I couldn't stooze - no discipline!

Rafter

I would also look at first direct.

As others have said - you really want a fixed offset to give you that much flexibility.

R.

supersunshine

Rang firstdirect this am re my own mortgage and they have no limit on how much you pay off so may be worth a look at as rafter suggests.