AM i allowed to overpay?

Thrugelmir

JA1000 wrote: »

Don't worry about the have you got anything to repay yet. It is an expensive event to buy a house and a lot of people seem to think interest only is the end of the world but it can realy help you get on your feet.

There is an inherent danger to over borrow, on the premise of repaying the capital "tomorrow".

Every month that passes increases the amount of capital to find in a shorter and shorter time frame.

For most people the disclipine of regularly payments that can be budgeted for is ideal. As lifes events can soon blow ones best intentions well off course.

Boozer

Who did you get the mortgage with and is it fixed? if so for how long? approx 2.8% seems very good.

As asked before, what was the plan for repaying the capital if you do not overpay enough over the term? have you taken out an endowment policy or something?

DVardysShadow

mrsmasterplan wrote: »

_Andy_ wrote: »

Not trying to be rude but wouldn't it be best to ask your mortgage provider rather than randoms on a forum?

Sorry but i thought this was for advice and help?
So even if you weren't trying to be, that was rude.

It ain't rude at all, get over it. Every different mortgage and lender has different terms, so especially as you did not specify which mortgage or lender, no one is able to give you accurate advice. In the circumstances, _Andy_ was about as helpful as it is possible to be.

Boozer

Thrugelmir wrote: »

I'm interested to know where the money disappears too. Please enlighten me.

Mrsmasterplan, can you please answer the questions people have asked, perhaps its your dad that understands it more than us, if so you could really help us by explaining it.

mrsmasterplan

My mortgage is with NatWest - I do not know if it is fixed or not??!
I have left the finer details to my dad as he knows which is the best for me -

I could not tell you where the extra money goes, but it definitely does work out more if you choose the repayment method rather than interest only and then overpaying.

We worked out repayment costs around 300 more a month, but that 300 does not all come off the total amount borrowed.

The interest is 2.99% for the first two years and then goes up to 4% after (im pretty sure - do not have it to hand)

I was only posting this question to get an idea of what fines are out there and how much they are?
I wasnt posting for people to belittle me and tell me to 'get over it'
Im an excited and young first time owner, and trying to learn as much i can.

Surely thats a good thing?

mrsmasterplan

Think it's fixed for 25 years

Radiantsoul

mrsmasterplan wrote: »

We worked out repayment costs around 300 more a month, but that 300 does not all come off the total amount borrowed.

You must have worked this out incorrectly.

coffeemonster*123

You say you're 'just about to take on first mortgage', have you commited to it yet?

Boozer

mrsmasterplan wrote: »

The interest is 2.99% for the first two years and then goes up to 4% after ?

mrsmasterplan wrote: »

Think it's fixed for 25 years

This makes me smile aswell, fixed means the same rate for X amount of years, if it changes after 2 years, then it was only fixed for 2.

mackemdave

Think you really do need to chat to your Dad over these things seeing as he has arranged it.Terms and conditions of mortgages are all different so it is difficult for people to advise you