fixed rate that allows overpayments?

clairey179

We're looking at a few fixes rates of between 4-5% for between 3-5 years. We're happy paying that rate for the security. We overpay by around 650 a month, there's about 80k left on the mortgage. We want to keep overpaying at the rate we've been doing, as it means the mortgage will be gone in less then 7 years . however, all the fixed rates we've seen only allow 10% overpayments, and after the first year, we'd want to be overpaying more than that.
Any suggestions? Thanks in advance for any suggestions.

somethingcorporate

How about a fixed offset mortgage?

You can shove your overpayments into the offset element which gives you the flexibility of taking them back out if you need to.

Peelerfart

Take a look at First Direct if you've got a good SVR

They might be able to provide what you're looking for.

Thrugelmir

Why not just take the best deal you can (of any kind) and overpay? Particularly as interest rates are as low as they'll ever be.

By fixing and wanting unlimited overpayments you are expecting too much from a product. Lenders need to make a profit.

Peelerfart

Thrugelmir wrote: »

By fixing and wanting unlimited overpayments you are expecting too much from a product. Lenders need to make a profit.

Thrugelmir

Isn't that exactly what FD are offering here though,or have I missed something ?

http://mortgages.firstdirect.com/mortgage-products/product/5-year-fixed-repayment~35

TrickyDicky101

If you will pay off the mortgage within 7 years there is absolutely no point fixing (and thus incurring mortgage fees) - the expense will exceed any benefit . Such short horizons mean you are paying off mostly capital each month and thus you are relatively insured against interest rate rises in any case.

clairey179

Thanks for all the replies so far. Our ltv is around 80% - property is relatively cheap where we live, which might make a difference to what we should do? Will look into the offset ones though, it's not something the broker suggested!

dimbo61

Have a look at the YBS 5 year fixed offset mortgages at 4.39%
You can overpay or build up savings in the offset account
FD also have a good 3 year fix offset or a 5 year fix at 3.89%

Thrugelmir

Peelerfart wrote: »

Thrugelmir

Isn't that exactly what FD are offering here though,or have I missed something ?

http://mortgages.firstdirect.com/mortgage-products/product/5-year-fixed-repayment~35

Thanks for pointing this out.

However.

Our ltv is around 80%

So the OP doesn't meet First Directs lending criteria.

Armchair23

I'm coming to the end of a YBS fixed rate offset mortgage and found it was ideal for us. As long as you can't get a better guaranteed tax free interest rate on any savings - chance would be a fine thing !

You don't have to pay in regular amounts or have a linked current account in the way you do with some other providers.

My husband and I run a small business so we didn't want to pay off too much in overpayments in case we needed to claw back some of the money.

I'm sure this won't suit everyone and there are obviously cheaper SVR around, but if you are really 'risk adverse' then this is quite a good option.