Our Mortgage Free Journey

JimLad

Just phoned em up and its a 5% charge to overpay over the 10% we have already done :-(

With the mortgage rate at 3.99% and the savings gaining 1.5% ish in an ISA it doesnt really make much sense to pay it off the mortgage now.

Luckyinlife

Ya at 5% your better of leaving it if it was 2% wouldn't be to bad

I get 3% charge in first year and 2% in second year but for me its all about owning more of my house and bringing the overall term down so i pay it as my rate is 6%

Firegirl

Next time you look at mortgages look at flex mortgages. That's what I have and it's so easy to overpay and great to have flex if ever a change of circumstances makes you need more flexibility.

JimLad

Sque wrote: »

Next time you look at mortgages look at flex mortgages. That's what I have and it's so easy to overpay and great to have flex if ever a change of circumstances makes you need more flexibility.

We have been looking at First Direct as they allow unlimited overpayments even on fixed deals.

Dont you find you tend to get much worse rates of flex and offset mortgages?

Mrs_Rachel_Trelfa

If it was me, I would overpay by the 10% limit and then put the rest in the best savings/current account and then when your fix ends do a big lump sum and then re-fix. But that's just my humble opinion.

JimLad

Mrs_Rachel_Trelfa wrote: »

If it was me, I would overpay by the 10% limit and then put the rest in the best savings/current account and then when your fix ends do a big lump sum and then re-fix. But that's just my humble opinion.

That is exactly what we are doing Rachel October 2016 cant come soon enough!

Mrs_Rachel_Trelfa

Must be frustrating to see it there but not be able to do anything?

JimLad

Mrs_Rachel_Trelfa wrote: »

Must be frustrating to see it there but not be able to do anything?

Very!! With hindsight we would not have gone for a mortgage with a 10% restriction

turtlemoose

if your savings are only getting 1.5% in your ISA then you need to move them, there's lots of places offering better rates than that, my current account is 3% (Santander) and that's not even the best one (I just don't have any savings so doesn't matter for me!).

edinburgher

T5B are offering 5% on up to £2,000 (and you can also open a joint account as part of a couple). Club Ll0yds are offering 4% on £5,000? and so on...