first op!

Hello all,

This is my first post, inspired by all on here to be mortgage free! :)

I am with Halifax for my mortgage and I made my first £300 op at the beginning of the month :eek: . I called to check it had gone through ok. It had and they asked if I wanted to reduce the term (its shortened by 2 months), which I said yes to, rather than reducing the monthly payments, as I want my monthly payment to stay the same. Was this the right decision? Sorry, I'm totally new to this MFW! Can anyone tell me does this incur a charge, they didn't mention it, but I have been reading some lenders can impose a charge for reducing the term?

Thank you, all and keep up the good work! x

Replies

  • CathTCathT Forumite
    7.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Hi, I was with the Halifax until recently and did the same thing you just have. I chose to keep my monthly payments the same which reduced the term. There were no charges for this. It would be worth checking your mortgage paperwork though to check if you have any overpayment limits.

    FWIW I don't think you're 'officially' reducing the term by making OP's, it's got to reduce as you're keeping your repayments the same.
    Feb 2023 - part 1 - £40,464 part 2 - £27,583 Total - £68,047 57 months to go!
  • AnnieddivaAnnieddiva Forumite
    168 Posts
    Tenth Anniversary 100 Posts Name Dropper
    Forumite
    hi - I'm with the Halifax too and I've reduced the term to keep the payments the same, on my paperwork they allow 10% of your annual balance in overpayments per annum before they start charging..so yes I'd definitely check out your paperwork...
    well done on your first overpayment - this site gets very addictive!!! :D
  • ifihadalittlemoneyifihadalittlemoney Forumite
    9 Posts
    Eighth Anniversary Combo Breaker
    Forumite
    Thanks for your replies CathT and Annieddiva. I am on the SVR and at the branch they said there was no maximum op's per month and I could make as many as I liked. Yes it is very addictive, so much so I find I am counting down until the next payday so I can make another op! That isn't quite so good counting my life away when I am only in my twenties!
  • pawlalapawlala Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    That isn't quite so good counting my life away when I am only in my twenties!
    you may prefer to call it counting up to the day you can retire early! ;)
  • ifihadalittlemoneyifihadalittlemoney Forumite
    9 Posts
    Eighth Anniversary Combo Breaker
    Forumite
    Ha! I know what you mean but that is so far away!
  • QB_WolfQB_Wolf Forumite
    722 Posts
    Forumite
    Thanks for your replies CathT and Annieddiva. I am on the SVR and at the branch they said there was no maximum op's per month and I could make as many as I liked. Yes it is very addictive, so much so I find I am counting down until the next payday so I can make another op! That isn't quite so good counting my life away when I am only in my twenties!


    This is worrying me a little, I need to stop focussing so much on pay day and enjoy the time in between.
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • ifihadalittlemoneyifihadalittlemoney Forumite
    9 Posts
    Eighth Anniversary Combo Breaker
    Forumite
    Yes try to do things to keep your mind of payday!
  • ifihadalittlemoneyifihadalittlemoney Forumite
    9 Posts
    Eighth Anniversary Combo Breaker
    Forumite
    Ok, so I received a letter in the post: "We have attempted to update the mortgage term, however as the difference is within £2, your monthly payment will not be amended and your DD will stay the same". Does this mean that they attempted to change my monthly payment when I said I'd like to keep my payments the same? Or does it mean I have reduced the total owed by £2?? Confused....!
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 in bonus points

MSE News

Ask an Expert: Scams

Watch MSE Katie's answers to your questions

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals