Are there any "pay as much as you want" Mortgages?

dotdash79

You will have to pay a minimum amount every month so that the loan is paid off over a period of time i.e. 25 years.

Mrs_Z

Have a look at Mortgage Trackers - here are some banks that offer them: NatWest, RBS, Bank of China, Britannia, Danske Bank, First Direct....

johnathan3

I am having a look at tracker mortgages, and I just dont get it...
The house is 350k.
I have 50k cash for the deposit.
These tracker mortgages all state that there will be overpayment charges, and the term of the mortgage is relatively small.?

dotdash79

Maybe you should speak to a broker.

amnblog

dotdash79 wrote: »

Maybe you should speak to a broker.

good idea as 'trackers' are not the solution

WTFH

johnathan, the key word you are looking for is OFFSET, not TRACKER.

Tracker is about how the interest rate will change in line with the Bank of England. Offset is about having the ability to pay extra into a second account with the mortgage.
The problem with Offset mortgages is that currently you need to be able to put down a larger deposit - 20% or more. After that, you can make regular overpayments or one-off payments and they will reduce the term of the mortgage. Also, if you run low on money, you can take some of it back out again.

My advice would be to speak to a broker.

kingstreet

The operative words in my original post are "penalty-free" indicating that any product would be potentially suitable as long as you are able to pay as much as you want with no penalty charged on early repayment.

It's why I avoided using words like "fixed" or "tracker" as there may be penalty-free versions of both out there if you look hard enough.

amnblog

This thread proves that a little knowledge is a dangerous thing.

When on a mortgage forum look for responses from mortgage professionals not thoughts and half ideas from everyone else.

Prothet_of_Doom

johnathan3 wrote: »

For example, say I make £5,000 per month, and I want to spend that all on the Mortgage, every month, so that It gets paid off within 5-6 years.

Are there any banks that will do this? I did look around but it seems they actually charge you extra if you overpay, as they want to keep you in a long term contract so they get their money's worth.

Thanks in advance.

I guess that the reason you just don't take out a 6 year mortgage is that some months, you will be unable to make the payment, as your £5K a month figure actually varies? .

John1993_2

johnathan3 wrote: »

The reason I dont want a 6 year fixed mortgage is for safety reasons. For example incase my income drops. So that's why I asked for "pay as much as you have" mortgages.

Sorry, I read the below;

For example, say I make £5,000 per month, and I want to spend that all on the Mortgage, every month, so that It gets paid off within 5-6 years.

and assumed that you wanted to spend £5,000 on the mortgage every month...

So yes, an offset mortgage is what you are after.