Reversing overpayments?

DoubleOhScrimp

Hello,

If I overpayed a mortgage by say £10k could I withdraw that £10k at any time I needed it? Or are overayments locked away once paid?

Yorkie1

I think it depends on the particular terms of your mortgage product / lender.

Goldiegirl

Mortgages generally aren't savings accounts, where you can put money away and get it out later.

That's why it's not a good idea to make part repayments unless you are 100% sure you won't need the cash later.

If you did make a part repayment, and then needed cash, you could apply for a further advance on the mortgage.

hillcats

Consider an offset mortgage maybe?
This way you can leave your 10k offsetting meaning less interest to pay but funds accessible if required .

InsertWittyName

As others have said it depends on the provider.

I've overpaid on my mortgage previously (with Halifax) and they allow me to reduce my normal payments until the overpayments are brought back in line.

DoubleOhScrimp

Ok I see. I got the impression that an option to overpay offered the same fuctionality as an offset mortage but only for a small fraction of the mortgage e.g. 10%.

Ideally I would prefer an offset mortage but the LTV requirements and/or higher rates will be a problem for me.