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Does monthly payment stay the same on SVR?
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ohmochraich
Posts: 220 Forumite
Hi all and thanks for any advice.
I am coming to the end of a 5 yr fix in the next 4 months. My current fixed rate is 6.09% ( 80% LTV). My current mortgage providers SVR is 2.50% ( for anyone buying before 2010). I intend on going on to this SVR as it seems good and favourably comparable to what I could get elsewhere on a fix. I am keen to keep paying what I'm paying monthly just now ( so as to overpay capital) and maybe even pay a bit more ( I'm allowed to overpay 10% of the mortgage per year).
Do I have to request that the mortgage provider keeps the monthly amount the same or will they automatically drop the payment to the SVR amount? ( I'm thinking that they will but need someone to confirm:rotfl:).
Also i added the product fee of £999 to the mortgage ( I know......STUPID but I needed every spare penny for basic furnishings - I know this was daft but easiest at the time! I'd like to pay this off when I move to SVR - can you do this or does it incur an early repayment charge? I know I will need to read through my paperwork for his mortgage company......but was just wondering if it's common or uncommon for companies to allow you to pay off sub accounts and if it usually incurs charges!
Thanks for any hints, tips or advice about coming to the end of fixed term or going onto SVR or remortgaging.:T
I am coming to the end of a 5 yr fix in the next 4 months. My current fixed rate is 6.09% ( 80% LTV). My current mortgage providers SVR is 2.50% ( for anyone buying before 2010). I intend on going on to this SVR as it seems good and favourably comparable to what I could get elsewhere on a fix. I am keen to keep paying what I'm paying monthly just now ( so as to overpay capital) and maybe even pay a bit more ( I'm allowed to overpay 10% of the mortgage per year).
Do I have to request that the mortgage provider keeps the monthly amount the same or will they automatically drop the payment to the SVR amount? ( I'm thinking that they will but need someone to confirm:rotfl:).
Also i added the product fee of £999 to the mortgage ( I know......STUPID but I needed every spare penny for basic furnishings - I know this was daft but easiest at the time! I'd like to pay this off when I move to SVR - can you do this or does it incur an early repayment charge? I know I will need to read through my paperwork for his mortgage company......but was just wondering if it's common or uncommon for companies to allow you to pay off sub accounts and if it usually incurs charges!
Thanks for any hints, tips or advice about coming to the end of fixed term or going onto SVR or remortgaging.:T
:rotfl:If it weren't for stress I'd have no energy at all. First rule of acting: Whatever happens, look as if it were intended.;)
Don't follow in my footsteps, I walk into walls:smileyhea When in doubt .............mumble.
I may look busy, but I'm just confused.:T I smile because i have no idea what's going on.:rotfl:
Don't follow in my footsteps, I walk into walls:smileyhea When in doubt .............mumble.
I may look busy, but I'm just confused.:T I smile because i have no idea what's going on.:rotfl:
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Comments
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Once you are out of the deal and on the SVR you can most likely pay off as much as you like (not limited to 10%).
As standard your payment will drop to keep the term the same once you can go on the SVR. Call up the lender and ask them to increase your payments to whatever you like.
With regards to the £999 fee, there is nothing wrong with adding that to the balance and there are times i recommend doing it for various reasons. This £999 would have been added to the balance so if you make a payment of £999 it will not be paying off that fee as such, it will just be reducing the balance by that amount - it all amounts to the same thing though.
Hopefully that helps.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks very much for that info ACG.
Once I'm on the SVR can I ask them to close the sub account? Or would the £999 automatically go to reduce the balance on the main account? Can you close down sub accounts or are they there for the duration of the mortgage?
I'm actually keen to fling as much spare cash as I can at the mortgage each month to reduce the term. Am I better doing that now or waiting until I'm on the SVR? (I'd assume that the earlier I start the less interest I'm paying).:rotfl:If it weren't for stress I'd have no energy at all. First rule of acting: Whatever happens, look as if it were intended.;)
Don't follow in my footsteps, I walk into walls:smileyhea When in doubt .............mumble.
I may look busy, but I'm just confused.:T I smile because i have no idea what's going on.:rotfl:0 -
The £999 will be part of the overall mortgage account, not a sub-account. So it just counts as part of the usual repayments / overpayments.0
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