Over payment questions

whippetboy

Hi,
My fixed rate comes to an end on 25th feb, intrest only,

Just rang lender and i have to reapply to start paying the capital.
I have been paying £458pm intrest only, but when on svr i would pay £464 paying the capital.

But if i get rejected i will be on the intrest only.

So would i be better off paying money into an isa and then paying a lump sum off?

I rang to ask when the best time to pay a lump sum off and they just said that i would have to make a payment 2xpayments greater than 1 months repayment.

While the intrest rates are low i want to pay as much off the debt as i can but want to make sure i do it the best way possible.

Advice is very much appreciated thanks.

_Andy_

Which lender is this? I wasn't aware any lender would treat conversion from IO to CR as a new application

whippetboy

_Andy_ wrote: »

Which lender is this? I wasn't aware any lender would treat conversion from IO to CR as a new application

The lender is ge money

_Andy_

Just to be clear, where you wanting to borrow any more money or change the term at the same time?
It seems ludicrous they're wanting to treat conversion to CR as a new application.
May be worth ringing them again

Jonbvn

In order to decide whether to save or overpay, you have to give us the interest rate on your mortgage.

whippetboy

_Andy_ wrote: »

Just to be clear, where you wanting to borrow any more money or change the term at the same time?
It seems ludicrous they're wanting to treat conversion to CR as a new application.
May be worth ringing them again

No i have 22 years left and no more money.

whippetboy

Jonbvn wrote: »

In order to decide whether to save or overpay, you have to give us the interest rate on your mortgage.

There svr is 1.99% above br so it would be 2.49%
Thanks

whippetboy

_Andy_ wrote: »

Just to be clear, where you wanting to borrow any more money or change the term at the same time?
It seems ludicrous they're wanting to treat conversion to CR as a new application.
May be worth ringing them again

Ok i have just rang and i am wrong its a contract variation,
But they will still review to see if i can go on capital repayments, so if not what would be the best form of saving the capital?

Thanks very much for your time.