question and advice on mortgage...

COOLTRIKERCHICK

i think this is thr right place to ask..

our fixed term mortgage with the Halifax has come to an end this month, and we have had a letter today to say as from the 1st of July our mortgage will be the Halifax Standard Varible rate with 3.5% interest. and in the other colum it say no under the early Repayment charges..

our mothly payment will in effect come down by around £55 per month.

2 things even though they are ajusting our monthly payment, can we tell them to stick to the original amount we were paying, plus can we throw more towards the mortgage as it says early Repayment charges as no, so we would not be restricted to only paying £105 over

sorry... but hope that made sense, as now we have surplus money every month, i dont know whether to throw it at the mortgage or save it in the lloyds vantage account and saver account as their interest rates are 4 and 5%

littlemrtinkle

give them a call and ask them how much you can overpay without penalty?

Trying_to_be_good

If the document says there are no Early Repayment Charges, there won't be a penalty for overpaying, so YES, you can overpay.

You need to phone them to check whether they can take your monthly payment (by Direct Debit?) for more than the minimum, or whether you need to 'top it up' by a Standing Order or stand alone payments for the extra.

Good Luck!

Mortgage_Reduction_Novice

Also worth checking when they calculate the interest... if its daily or weekly, then overpayments at anytime make sense. If its monthly or annually, keep overpayments in a saving account then try to provide your overpayment a few days before the interest is caluclated.

shellnapier

COOLTRIKERCHICK wrote: »

i think this is thr right place to ask..

our fixed term mortgage with the Halifax has come to an end this month, and we have had a letter today to say as from the 1st of July our mortgage will be the Halifax Standard Varible rate with 3.5% interest. and in the other colum it say no under the early Repayment charges..

our mothly payment will in effect come down by around £55 per month.

2 things even though they are ajusting our monthly payment, can we tell them to stick to the original amount we were paying, plus can we throw more towards the mortgage as it says early Repayment charges as no, so we would not be restricted to only paying £105 over

sorry... but hope that made sense, as now we have surplus money every month, i dont know whether to throw it at the mortgage or save it in the lloyds vantage account and saver account as their interest rates are 4 and 5%

do you have a link to that savings account

COOLTRIKERCHICK

shellnapier wrote: »

do you have a link to that savings account

thanks for the info, i will get hubby to phone tomorrow

here are the links to the lloyds vantage account thread.

http://forums.moneysavingexpert.com/showthread.html?t=1724209

also i have opened a Halifax and BOS current account, i just put in 1k a month ( and take it out again:D) and i get £5 per month ( as long as you deposit 1k in the month) S better than any interest rate...

here is the link to the mse thread for that too...

http://forums.moneysavingexpert.com/showthread.html?t=1475183

sorry for going off thread, but its well worth going off thread if someone can make the most/ make money;)