Mortgage with monthly overpayments

Emeralds65

Hi there, I would really appreciate if someone can advise me on this.

I am 29 years old earning 60000 per year and have been accepted for a property costing 225000, i will try reaching to 33750 deposit which will give me 85% LTV.
My question is which mortgage is best for me when i can afford paying monthly around £1000.

I am looking for some mortage which lets me overpay on monthly basis with minimal or no fee for overpayment. I might be overpaying£100 extra everymonth so it will make monthly payments of £1100 but because i am not sure if some of the months i might be able to add only 50 or nothing.

Also i have no other debts but two children and a wife as financial dependants.

Please someone advice me on this regard as my house offer has been accepted, i dont want to loose it but really confused about whoch mortgage to choose

Yorkie1

Many mortgages allow overpayments during the fixed term without any penalty. e.g. my NWide product allows £500 per month without penalty; others allow a % of the outstanding loan at the start of a year to be repaid during the year.

If you really are uncertain about where to start with mortgage searching, perhaps a visit to an independent mortgage broker (not the one in the EA) would be a good idea.

ethank

I recommend a broker!

Emeralds65

Thank you very much, i was looking at post office mortage the rate seem really good just now looking what if i do overpayments, also why do you think estate Agent mortgage advisor is not good but recommend a broker otherwise :O
Thank you both for your helpful answers, really appreciate your help.

ethank

The Estate Agent broker does not always look at whole of market. For instance Connells & Sequence Group are owned by Skipton Building Society and they prefer their own products.



There are lots of 'relationships' between EA brokers, estate agents and building societies, better someone that is independent!

Emeralds65

ethank i cant say how much thankful I am to you, because my Estate agent who is Roger Platt has a mortgage advisor who was forcing me on Skipton Building Society but i didnt know they all are same company ::(

A big thankyou to you for letting me know, Cheers!

Emeralds65

Also if I am looking at mortgage payments without penalties when i overpay each month what exact condition should i look into/ ask for ? Please advise.
Thanks!

Yorkie1

Most of them just say overpayments permitted up to a certain level. It really is quite rare these days for absolutely no overpayments to be permitted without penalty. I think you're focusing on this element a little too much.

Go to an independent broker, they will do a full fact find, concentrate on whether you want fixed or tracker; duration of product; fees charged etc. And when you've got it down to a couple of different products, then look at the overpayments situation for each.

hugo15

Something that has worked for me is having an offset mortgage. This type of mortgage allows to to overpay in to a savings account. The mortgage interest is then charged on the net of your outstanding mortgage less your savings balance. The advantage of this is that usually the amount you can save is unlimited and if you do need the savings at some point you can easliy get them back.