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Capital Repayment inbetween deals?
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caeler
Posts: 2,638 Forumite
My current tracker deal with Nationwide comes to an end in December 2012 so I'd like to fix for 2 years and having reviewed the deals will likely stay with Nationwide.
Is it possible to make a capital repayment between deals? So I am borrowing far less for the 2 year fix. Obviously I don't want to incur an ERC.
Is it possible to make a capital repayment between deals? So I am borrowing far less for the 2 year fix. Obviously I don't want to incur an ERC.
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Comments
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Of course.
Make the payment the day after any ERP ends, then have a new rate start the day after.
Do it in two separate transactions. Don't phone Nationwide and ask them to take the overpayment and do you a fix at the same time. It'll end up cocked up. Lenders don't "multi-task" well these days.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Can't tell you how useful your post has just been kingstreet!
So, i'll let the deal expire on 21 December 2012. The next day I'll transfer £xx to my account, then once it has been received I'll then apply for the fix rate. All online meaning I'll get £400 cashback for the pleasure!
Yay!0 -
You'll need to tell them how to apply the overpayment. You have the choice of reducing the term or reducing the monthly payment. Make sure this is resolved before you ask for the fix.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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What's your follow-on rate? Are you going onto 2.5% or 3.99%?
Mortgage before 29 April 2009 determines which, IIRC.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
3.99% unfortunately! (Reverts to SMR because I took mortgage out after April 2009) I'm now just running some figures to decide if I want to take a deal or remain on SMR for a while. It all depends on my income really and how much I'm likely to overpay.
I want to reduce the term and quite happy to keep the monthly payments at the current value if not a little bit higher.0
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