Overpaying dramatically, whats my limits?

dannyboyleeds

im currently looking at buying a property,

i work self employed in the music/night club industry, business is booming and will peak for 5 years at a guess

im going to opt for a 25 year mortgage ( as you never know whats round the corner) but while business is good i want to be able to pay as much off the mortgage as possible so that when business evens out im left with little outgoings and can sleep at night

heres a example

200,000 mortgage , 1180 a month on 25 years, id like to aim at paying another 2k a month off that for as long as i possibly can .

is there a limit to what i can overpay? or is there certain lenders who dont have limits

please help!:j

RufusA

Most mortgage lenders will allow you to overpay up to 10% of the outstanding balance each year i.e. 20k on a 200k mortgage in the first year, 18k in the second etc.

Some lenders, i.e. Chelsea, HSBC, Ipswich etc. will allow greater overpayments on some of their products.

Alternatively if money is going to be variable, an offset mortgage may work better for you, and give you more flexibility for tapping in to your overpayments during lean times.

Depending on how many years worth of accounts you've got, size of deposit etc., you may need an independant broker to use their experience to marry up your requirements with an available product.

HTH - Rufus.

Jonbvn

It depends on the mortgage you get. Some trackers will allow unlimited overpayments. Most fixed rate mortgages allow a maximum of 10% overpayment per year or less.

Whatever mortgage you get make sure you have a good deposit. 25%+ would be ideal!

dimbo61

Yorkshire building society and first direct do fixed offset mortgages
As you are self employed offset may well suit your needs and you can have several accounts offsetting the mortgage
IE 1 TAX account !!!
2 holiday fund
3 ISA,s