Re-mortgage

smmz1972

Hi. A friend of mine without internet access at the moment has asked me to post this for him.

"We will come to the end of our fixed rate mortgage in July (rate of 3.64%). We will have about £50k left to pay but want the option of being able to pay this off at any time without any redemption fees. At present we can overpay up to 20% each mortgage year without penalties but this will reduce to 10% once we are on the variable rate which is 6% from July. I can have a 2 year mortgage from Nationwide but that means guaranteeing I will pay £2200 a month which I can't do but I want the option of being able to pay £2k in an overpayment each month if I have the money.
Does anyone have any suggestions about which mortgage will be the best for:
overpaying without penalties (upto £2k a month)
paying off the mortgage at any time without penalties?
low interest rates
(i know I am pushing it now but) free valuation and legal fees."

Thanks in advance.

herbiesjp

Normally if you go onto a standard variable rate there are no early repayment charges, so not sure why you would have the 10% limit. But you could find a deal that is cheaper than the 6% quoted. Just going on the basics on the post you should be able to get a fee free deal, with no penalties for overpayments.

MarkyMarkD

All Alliance & Leicester discounted mortgages allow unlimited overpayments during the discounted term. This does NOT apply to their fixed rate mortgages.

They would be ideal for your circumstances IMHO.

There are options available without application fees, and with valuation and legal fees covered.

You will have to pay their £295 account closure fee at the end, though, but that isn't a high price to pay for the flexibility and low rate in the interim.

Something like the long term base rate tracker feesaver might be attractive - 4.99% for one year, then 5.50% forever thereafter, with unlimited overpayments and no penalties for redemption after the first year.

Johnhowell

I have just this week completed on re-mortgaging with Nationwide Standard Variable Rate Mortgage for 10 years. I found the process completely painless and no costs at all. The interest rate is not the best at 5.99% but this is not critical when wanting to pay off early!

There is a limit on regular overpayments of £500 per month, but no limit on lump sums, which is the route I am taking over the next 2-3 years. These lump sums will reduce the amount of interest calcuated from the day after payment

There is no early repayment charge.

Cheers,
John