Making a payment off my mortgage

leereni

I have £20000 I would like to use to pay off part of my nationwide 5 year fixed rate mortgage. We are only a year into the mortgage.

Am I able to use the money to pay off some of the mortgage?

Thanks.

Barricade

You'd need to check your mortgage deal. Some only allow a certain percentage to be paid as a lump sum overpayment each year.

I found this on Nationwide's site: You'd need to be specific around the 'year' you are currently in.

http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-overpayments#xtab:repayment-capital-and-interest-fixed

dj1471

Depends on the size of the mortgage - the current rule is that you can overpay up to 10% of the original mortgage value each year. So to overpay by £20,000 your mortgage would need to be for £200,000 or more, otherwise you'll get early repayment charges.

I think they've recently changed the limits however, so you'll have to check the paperwork for the deal you're on.

densol_2

They have only recently changed new mortgages / deals to 10% - it used to be £500 per month - so best check with them or your mortgage offer letter xxxxxxxxxx

leereni

Thanks.

I remember our mortgage when we got it allowed is to overpay £500 without ERC.

How much normally are ERC?

El_Torro

With a large sum of £20k it might be worth talking to someone, regardless of what your terms say. It might suit them to accept it without a charge.

A few years ago my mortgage company offered me a window to overpay as much as I wanted without penalty. This is on a 10 year fixed rate. I don't know how common these offers are though.