Best New Mortgage to Overpay!

CvPiper

We are considering moving home, with about a 60-75% deposit depending on how much we wish to spend.

We are currently mortgage free through overpaying, and would wish to take out a mortgage that I can freely overpay with no penalties.
On our previous £60k 5 year fix we got hit with ERC for settling earlier.

I do not feel happy committing a 10 year mortgage which 90% chance is easily affordable on 70-80k but obviously I have to meet payments in good and bad months.

I was thinking that perhaps an interest only mortgage would be best, then I could pay off capital each month with what I have in my account - some months could be upto £2k, but always well over £500?

Does an interest only mortgage always allow for this? Or would I perhaps be better advised to look at an offset?

Thanks in advance for your help!

handytips

I think an offset will probably suit your needs, please be aware that the vast majority of I.O mortages now require a repayment vehicle to be in place, therefore overpaying is NOT a repayment vehicle, they are looking for Investments,Pension,Isa etc etc. Sale of Property is a very limited reason and limited to a hanful of lenders. However Offset is the best option for you

CvPiper

Thank you for th advice on that. I shall book an appointment with an advisor to go through Offset in detail with me

The_Palmist

why not go for any of the life trackers, they normally come with No ERC.

eg. HSBC life time tracker currently offering 2.99%

CvPiper

From their site they look quite good. Will also bring them up with the advisor, I shall be repaid before the interest rates really sky rocket with a bit of luck.

The_Palmist

there's no product fees either and you are free to switch whenever.