End of C&G Fix and onto SVR

harwoodt

Hi,

I am about to finish a 3 year fix on 6.99% (thank god!) and revert to the SVR with C&G, currently 2.5%. This is great news and I am planning to stay on SVR for the short term.

My question is, is there an overpayment charge on a SVR mortgage? I am currently allowed to overpay a maximum of 10% a year but does this change when the fix ends? I want to keep my payments the same and overpay but this would take me over the 10% currently allowd.

Any ideas anyone? Also, do we have any predictions for the base rate heading into 2010 / 11?

Thnaks

Tom

opinions4u

harwoodt wrote: »

My question is, is there an overpayment charge on a SVR mortgage? I am currently allowed to overpay a maximum of 10% a year but does this change when the fix ends?

I believe there is no restriction at this point.

Also, do we have any predictions for the base rate heading into 2010 / 11?

My view is upwards to no more than 2.5% by the end of 2011.

You'd be better consulting the lady in the tent on the end of Blackpool's North Pier to be honest.

Rob71

If you're out of your fixed period, you should be OK - maybe a good idea to check?

Likewise, sooner or later (hopefully later!) we'll start climbing up to 4,5 or 6 (maybe higher?) interest rates - if you continue you to pay as if the mortgage was still 6.99% you'll make a nice little saving and your monthly budget remain fairly stable.

One thing however, at 2.5% can you not find some savings accounts to bung the surplus into? If you could find an ISA or a regular saver) that pays more interest (net) than 2.5% it would make more sense to save and then pay off the mortgage when the rate starts to creep.

Batchy

Rob71 wrote: »

If you're out of your fixed period, you should be OK - maybe a good idea to check?

Likewise, sooner or later (hopefully later!) we'll start climbing up to 4,5 or 6 (maybe higher?) interest rates - if you continue you to pay as if the mortgage was still 6.99% you'll make a nice little saving and your monthly budget remain fairly stable.

One thing however, at 2.5% can you not find some savings accounts to bung the surplus into? If you could find an ISA or a regular saver) that pays more interest (net) than 2.5% it would make more sense to save and then pay off the mortgage when the rate starts to creep.

This only makes sense if you are are not using your allowance already to build up a pot that you do not intent to draw down to pay off your mortgage... as once you take it out,... you cant put it back in again!

its back down to 3600 per annum limit... or net of tax situation.

dimbo61

Overpay while you can but also consider building up savings of between 3/6 months of income in cash ISA,s as most paying at least 3% TAX free.
There are also a few regular savers paying good rates HSBC 8% Before tax
If you have a big mortgage and cant afford to pay high mortgage rates then keep a close eye on the market and think long term FIX if you need that security GOOD LUCK