mortgage overpayment

saintknoxmissus

Hi everyone

I'm new to this so please be gentle!!

I have a mortgage which is coming to the end of its fixed term at the end of October.
The mortgage is with Nationwide and is £60,000 on interest only and £26,000 on repayment.
I am thinking of leaving the mortgage to go onto its svr of 3.99% after the fixed rate ends.
My question for you all is, if i can manage to make overpayments monthly, will the overpayment come off the interest only, the repayment or both parts of the mortgage?

Thanks in anticipation of your help

yelf

both unless agreed otherwise

foreversummer

Hi

Check out your mortgage offer or KFI letter. You may find that you will revert to the svr of 2.5% when your offer ends - 2% above base rate! I believe it is only customers who have taken out a mortgage recently that the 3.99 SVR refers to.

Regarding the overpayment question, I think you will need to specify which part you want it to come off of.

Foreversummer

SelbyJay_2

When i overpaid it came off the capital and the interest. I'm with Halifax tho. I only over paid for 6 months, but the difference was very visiable.

koexelek

foreversummer wrote: »

Hi

Check out your mortgage offer or KFI letter. You may find that you will revert to the svr of 2.5% when your offer ends - 2% above base rate! I believe it is only customers who have taken out a mortgage recently that the 3.99 SVR refers to.

I am sure you are correct on that. It's only the new Nationwide deals that go to 3.99%. All the old ones go on to 2.5%.... and as much as Nationwide must hate that.....there is nothing they can do about it :cool:;)

saintknoxmissus

That sounds even better then!!! Thanks for the answers everyone

Ilovejackbauer

It sounds like you have two mortgages, ie what we call a parent and a twin. If you want to make an overpayment you can specify which account you want the payment to be made to. Just double check though that you can make overpayments, although it your fixed has come/is coming to an end I don't think there will be any problems.

saintknoxmissus

Sorry ilovejackbauer when you refer to parent and twin, is this because i have part interest, part repayment mortgage? Not up on all this stuff the ex used to deal with it all so its coming as a bit of a shock to the system for me lol! But yes as soon as the fixed rate is finished i can make overpayments of however much i want to.
From what i have read on this site, making the decision to go onto the svr rather than getting a new fixed rate is the best thing for me to do, i have a good ltv with the house being worth (conservatively) £145000 and owing £86000 so i don't think i'm taking too big a risk.
At the moment i pay £465 a month, but want to pay off £550 a month when the fixed rate finishes, hopefully this will enable me to pay off a tad before the rates get too high again.
I'm not a complete idiot am i?????

saintknoxmissus

Anyone have any idea on the sort of saving i should be able to make?? :think:

Rikki

Check with Nationwide as part and part mortgages operate differently.

Woolwich mortgage. If I want to make any extra payments to the interest only portion of my mortgage I have to send a cheque specifying this. Any addition payments I pay via the bank will automatically come of the repayment side.

Give them a ring so you are sure!

saintknoxmissus

Thanks Rikki
Again sorry to seem stupid, but which is best to pay off the interest or the repayment? Or is it all much of a muchness?