More Mortgage Questions

Fredula

Hi, Sorry for another thread re mortgage over payments, my husband and I have a few more questions which I'm hoping you may be able to help us with.

1. When your fixed period ends (we're with Santander) can you switch to another bank and have another fixed period or does it have to be SVR?
2. If not, is it possible to get another fixed rate if you increase your mortgage (e.g when stair casing on shared ownership)?
3. If you want your over payments to reduce your monthly repayments, what proportion of the interest and repayment is lowered? For example, if we were to pay 10% would it reduce the interest and repayments by 5% each, or solely the interest/repayment?

Slayerx

Regarding over payments, they will be off the capital and due to the capital going down you will reduce the amount of interest being charged.

When your rate finishes you could remortgage to another lender or see if Santander will offer you a new product.

You might be able to pre-arrange it to start the day after your current deal ends.

Fredula

By capital, do you mean the price of the house without the interested added on? (so our mortgage is £86000 but we will be paying £144000 over the 25 years, so would the capital be the £85k?)

Slayerx

Capital is the mortgage balance.

A normal mortgage accrues daily interest and when you make a payment the daily interest continues to be added at a lower rate until you pay again and so on.

Fredula

Okay thank you.

I'm a piggybank saver so save lots of bits here and there in lots of bank accounts. When we put our mortgage application in (we have the agreement in principle) am I going to need real copies of every single bank account, or just the ones our wages go into?)

Also, I don't have a P60 - I have my last payslip for my previous employer which is the last payslip of the year (being paid in on 31st March). Will this matter? I had a P45 but I handed it to my new employer and I think I was supposed to keep part of it?