Overpaying costs 10%

Alcofrolic

Im in the process of getting a mortgage (FTB) and I asked my Mortage advisor about being able to overpay and he said that there is a 10% charge to me if I overpay.

What does this mean?

Rather than overpaying is it worth me putting the money aside in an ISA or something and then when my fixed rate comes to an end and I can get another mortgage I do a lump sum payment?

Thanks in advance

Peelerfart

Exactly right ,use the highest savings account you can find .
There would have to be a very,very good reason before I would pay to overpay.

Good luck

PF

dimbo61

Check this with the lender as the mortgage advisor could be wrong!

Fur156

Some Lender's do charge on overpayments, some have a limit to how much you can over pay each year. I can over pay upto 10% per year on my mortgage.
There sometimes is a charge on overpayemts if you are on a fixed or tracker deal for the term of the deal.

slevin

an alternative is to check if they charge for changing your mortgage duration. if you reduce the term you are effectively overpaying and reducing the amount of interest payable.