Mortgage Overpayments

ebs1980

Hi

I've just been reading the small print of my mortgage and it says about overpayments:

During each FY you can make lump sum and/or regular overpayments that will not incur an early repayment charge or an admin fee providing that (1) each lunch sun overpayment is not less than £500 and (2) the total amonut repaid does not exceed 10% of the amount owed.

Just wanting to check, so if i make a £10K payment i will not incur any fees (it is less than 10% of my mortgage)

If i did this it would bring my mortgage repayments down by £60 per month. My mortgage is over 30 years, is it better to just pay lower amounts or should i try and get my mortgage switched to 25 years and pay £15 per month more but having paid the extra £10K off?

SJ1

Hi

1. I think the overpayment shouldn't incur any charges but double check over the phone with your mortgage holder

2. I am not a big fan of long term mortgages (the interest is, as you have just shown, so much more) but I think that you would have to renegotiate the whole deal rather than just adjust the term so are you locked in at the moment or not? If you aren't then you can probably amend but if you are locked into a deal then I doubt it without breaking the deal.

3. Lastly its up to you what you can afford and what works best for you, as long as it reduces the capital it will make a difference in the long run.

Good luck

SJ