best mortgage for overpayments?

patrick_bs15

Am currently on a fixed rate with Stroud and Swindon (5.7%, fixed till 31.10.10).

Managed to overpay mortgage by £9,500 last year and am determined to overpay by similar amounts over the next 5 years so the mortgage is cleared (but can't currently overpay, otherwise would get £2,500 penalty!)

Now owe approx. £48,000 (original mortgage was for £76,000 in Sept 2003).

Anyone got any tips about mortgages which let you overpay as much as £10,000 per year without any penalty? Fixed rate would be my preference, but have got an open mind.

Thanks for any constructive advice: this is a brilliant site :beer:

wymondham

The best mortgages for overpayments are current account mortgages as the overpayments are completely automatic (anything you dont spend each month is assumed to be a re-claimable mortgage payment, hence the mortgage can reduce rapidly). They are for lazy (don't want the hassle of transfering X, or being restircted to Y), disciplined moneysavers... Not the best rates, but good motivational product if you're serious about getting rid of the mortgage.

If I could upload pictures I'd have the classic weight loss one with me in baggy clown trousers, as it worked well for us!!!

notisis

Take a look at the various offerings from First Direct - I believe their fixed rates allow unlimited overpayments and they will remortgage from £10,000 up. There are others I think but lots of banks/building societies have a minimum lend of £50,000 when you check the small print. I've seen lots of adverts from NatWest and HSBC and Woolwich so you might want to check their current products to see if they do fixed rates with the type of overpayment you are after.

dimbo61

Have a look at YBS as they have some good offset fixed deals at the moment with unlimited overpayments or you could just put extra money into offset ( same effect) as long as you dont clear the mortgage before the end of the 5 years.
4.59% and £995 fee