lump sum reduction

sand21_2

We had fixed rate deal which finished early this year and were advised to stay on SVR mortgage (part interest only & part repayment) as we were expecting to be able to pay off a lump sum. We now have lump sum available but small print on mortgage offer says we will not receive benefit of lump sum reduction as interest is added annually. If that's the case surely would be better to invest £ and pay lump sum in sept. Rang customer services at Barclays and was told as its substantial amount (£ 60k ) should go ahead and make payment now.
Help- don't know what to do.

dimbo61

Current Barclays SVR
The current standard variable rate for Barclays Mortgages is 4.99% although their follow on mortgage rate is 3.39% plus the BBBR. This SVR tracks the Barclays Bank Base Rate (BBBR) which is usually the same as the Bank of England Base Rate but is not guaranteed to be the same.

Not sure what you are paying but as most mortgages now charge interest daily I would pop into your local branch or speak to the Mortgage Centre and ask can you pay off a lump sum without any ERC,s (early repayment charges).

Thrugelmir

Ask if you can be switched to daily not annual interest.

sand21_2

We were intending to pay all of interest only part of mortgage and some of capital on repayment. We were hoping this would reduce repayments. Have tried Barclays- useless. Couldn't explain why I should pay off now if the clause on mortgage offer is correct. Didn't suggest possibly changing to daily interest. Got number for branch mortgage advisor- still waiting for her to ring 3 days later.

getmore4less

I would check what rate you are on a lot of Barclays mortgages went to a low tracker rate not the SVR.