can we overpay ?

mirry

Just a quick question,

In August we put our mortgage on a fixed rate for 5 years,
and now we are hopefully going to be bringing in a bit more money on a regular basis. So can we make regular over payments ?

many thanks

bootman

It depends on who your mortgage is with. Nationwide allow overpayments of £500 max a month, others I think allow10% in a year.

If you say who you are with someone will be able to answer I am sure

Trying_really_hard

I agree with above poster, usually on a fixed rate you can make a 10% overpayment in a rolling year. Some banks set a minimum or maximum overpayment amount, so just check whether this is the case.

cupid_s

I can overpay by 20% a month with my HSBC fixed mortgage so it is worth checking.

mirry

our mortgage is with the woolwich.
Excuse me if i seem a bit dumb, but can i clarify ,10% of what exactly ?

grade15

10 % of how much you borrowed..
so if u borrowed 100k ..you can repay 10k in one yr..
best to check the small print in your paper work or check with the woolwich website..
"Five-year fixed rate: 3% of the balance repaid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 31 January 2012. However you can overpay up to 10% per year during the fixed rate period without incurring an early repayment charge."

best to ask them..next time ur in cos u might have different situation!

ailuro2

ours is 10% of the outstanding amount at the beginning of our mortgage anniversary date, not from the original outstanding amount.

Which means we can now pay 10% of 30,000 whereas at the start of the mortgage we could have paid off 10% of 6,000 (I wish!!)

Dumyat

I can pay 10% extra a year without penalty. have to say my bank did not make it easy to make the payments, but I have it sorted now.

Floxxie

Hi,

I've noticed that everybody is talking about capital repayments but nobody has mentioned increasing your monthly amount you pay by Direct Debit. My mortgage is with Abbey and I can make maximum of 10% capital repayments a year but I have also increased my monthly amount by £250 - it just took a letter to the Mortgage Lender and as long as I don't pay off the entire mortgage within the tied in period, I can increase or decrease the monthly amount and still pay the 10% without penalty, which is exactly what I have done this year.

The person I spoke to at the Abbey said most people weren't aware of being able to increase their monthly amount; probably worth looking into for some people.

HTH
Fiona