I may sound stupid but .....

financialbliss

Hi,

I've a Nationwide mortgage and I can transfer funds to it from my current account, make a payment in branch or alter my term.

Altering term downwards normally ramps up payments and cuts into the term. Note that Nationwide have recently started to charge a £20 admin fee to recalculate your payments when you ask them to reduce the term.

All lenders have different products / terms, so check your paperwork speak to someone or check their website.

Here's Nationwide's:
http://www.nationwide.co.uk/mortgages/existingcustomers/overpayments.htm

I'm out of my fixed rate period and have no restrictions on what I can overpay. I'm also wide open to rate increases, but with hopefully less than 12 months left on my mortgage, it's a risk I'm wiling to take

Financial Bliss.

Ericd

I have been lurking on this forum all year long.

My mortgage has no limits for early repayment - so I make payments all the time.

Any winnings of any shape or form go onto the house.

I had a huge declutter on eBay over this year and put all the proceeds on the house.

Go for it, it's addictive...

laurajane1

I have my mortgage with Britannia and am not sure about makning repayments, also i cant find all the paperwork at the moment, its a tracker mortgage, any advice

Spiggle

laurajane1 wrote: »

I have my mortgage with Britannia and am not sure about makning repayments, also i cant find all the paperwork at the moment, its a tracker mortgage, any advice

Just popped on to the Brittania site and if you click the "Features and Benefits of a Tracker Mortgage" on the right side of the screen a pop up opens which includes the following statement:

No early repayment charges on overpayments of up to 10% of your previous year end mortgage balance each year.

Hope that helps but if you're in any doubt a quick phone call to them should give you all the information you need.

I pay my OPs by Standing Order by the way but I'm not restricted in any way on amount.

Hope that helps you and good luck with the addictive game of saving thousands off the cost of your mortgage.

All the best,
Spigs

laurajane1

Thank you so much for looking on the website for me, that was very kind of you xx

laurajane1

Does that mean i can pay an extra 10% of my mortgage each month, for example if a mortgage was £500 each month you could pay anotherr £50 on top of that.

coldcazzie

No, it means if your mortgage balance at the end of last year was £100k then you can overpay up to 10% of that, ie, £10,000. However, then your balance would be £90k at the end of the next year, so the following year you'd only be able to repay up to £9,000. Anything over that 10% threshold incurs a charge.

laurajane1

But does that mean you have to pay the 10% altogther or over the year?

coldcazzie

Either if you have the money to make a lump sum deposit then by all means do it, but I don't think most people do, I think most people make additional payments as and when they can.

Brittania may have a limit on the size of each deposit, such as stating that it must be over £500 or under £500, or they might not. The only way you can sure on that is to ask them or read your T&Cs.