A&L Mortgage - overpayment help

leeegglestone

Since I have started Matched Betting, my intention was to use this in some way as an Overpayment on my Mortgage.

At present, my aim is to make £9 a day from this, which throughout the Month, would equal my Mortgage Payment £270ish, meaning Im living Rent Free.

Details on my Mortgage.

I borrowed £52,500 over 30 years. I have 5years Fixed at 4.74% and after this it would be 5.49% for the remaining (possibly remortgage after the 5years depending on whats available)

I have been reading my Mortgage info because I know, there are some Repayment Charges which need to be weighed up.

I am with Alliance & Leicester & have had my mortgage since end of May. My early repayment period is I think 1st march06-30april 2011. In relation to repaying the mortgage in full (which isnt an option, however it affects what charges I have to pay), it says

Basis of Charge - 295 plus 3% until 30/04/011
Maximum Charge £1870

Am I right that any overpayment I make inside the initial 5years Fixed, I will have 3% deducted from my overpayment, or would I be deducted £295 plus 3% of my overpayment.

I am allowed one penalty free overpayment in every January within the early repayment period which has to be over £500 but cannot exceed 10% of what my outstanding mortgage is. I think my outstanding mortgage in January should be around £50,000, therefore meaning I cannot make an overpayment of over £5,000

Am I on the right lines, just trying to weigh up if Its best to make an overpayment outside of January because it will mean I am paying less Interest & a reduction in my monthly mortgage? Or making just one in January

Does anyone know that when I have made the overpayment, do you get a choice from it reducing the amount of mortgage you owe or the actual Term?

Hope someone can help me.

Joe_Bloggs

@ Leeeglestone
Save your money get a National Savings Direct ISA @5.3% and stick your money in that (£1000 min to open though). Alternatively, find out what is the highest regular saver account you can get as an existing A&L account holder.
J_B.

leeegglestone

I do have 6k in my Barclays ISA, which is a rubbish 4.2% and so was going to switch that anyway to a new provider.

Why would I want to get high regular saver account where Im going to pay Tax on my Money again. Anything other than an ISA seems a waste, when you can use the excess money in a matched betting fund.

I have an A&L current account too.

Anyone got any answers for my mortgage questions, if i was getting what it says about overpayments?

Joe_Bloggs

Sorry Lee.
I reckon what you have is a redemption quote for is early repayment for the whole mortgage. Congratulations on such a good rate. If anyone was going to take 3% off my individual overpayments then I would not make them.
You can transfer ISAs around to better rates without losing interest.
ISA rates can be beaten on taxed regular savers if the interest rate is high enough. A&L have the highest (12% !) but I suspect/ know is not available to certain existing account holders. It is just a promotional rate. There are lots of others, check out the savings and investment board for the best of the rest and MSEMartin's article.
About the only thing I know relating to matched betting is betting with match sticks. Even then I got my fingers burned.
J_B.

leeegglestone

Yep it is a good Rate, I decided to fix myself to it for 5years for a bit of stability because I live on my own. My aim was to get more CAsh into the mortgage before the 5years was up and therefore I wouldnt be paying so much back on the potentially increased %.

Looks like I should just make the one Overpayment in Jan then.

I did have the A and L 10% account, setup, but I cancelled it when I bought my house because I didnt think I could afford to tie myself up that much to a regular payment.