Halifax mortgages

WideAwake

Hi All, :hello:

Let me start by saying thanks to you all....as I've been reading this forum for a few weeks and it has given me the much needed kick to start tackling my mortgage...

I have had my mortgage for 4years on interest only...and never paid any of the capital off. Yesterday I changed my Halifax interest only mortgage to a repayment and have found out I can pay 10% overpayment a year. I will be using my savings (keeping a few months pot) to pay this 10% off, but it is annouying, that I cannot pay anything further.

Does anyone know if there is any way I can pay more off? I will probably start saving in a different account for next years 10% overpayment and maybe some more (If I stay in work) to put towards it on remortgaging when my deal comes to an end.

I won't be starting a MFW thread just yet, as this 10% thing limits what I can do.

I am on 5.79% until 2012...and the penalty to leave is very high (after some calculations, its not worth it).

thanks again,

WA

determined1_2

What you can do with the Halifax is reduce your term outstanding and this will then up your 'normal' payment.

This essentially allows you to OP and you can put the term back up again.

I've just done this and there are no charges.

HTH

WideAwake

Hi Determined1, thanks for the reply....so if the mortgage is for 23years...I can ask them to change it to be for 20years? therefore paying more capital off in the monthly repayment?

dimbo61

Yes thats right just ring them up and ask if you can reduce the term by say 3/5/7 years and use "whatsthecost" to work out the extra cost each month.
As you deal runs until 2012 ie 2/3 years left you could reduce the term to say 5 years IF you have lots of money in the savings to make up the difference in the new much higher mortgage payment!
Say you are paying £500 a month now and reducing the term to 5 years means the new mortgage is £1500 a month then you drip feed £1000 a month out of your savings account for the next 2/3 yaers ( if you have that much in savings!!!)
At the end of the fix you can extend the term back to a longer period if you cant afford the high mortgage payments GOOD LUCK
Better than the savings rates you are getting now.

WideAwake

thanks dimbo61....don't have that much in savings but am fortunate to be able to make the odd lumpsum overpayment. Will give them a call today to see if I can reduce the term by 2 years...which using whatsthecost seems managable...