Serious mortgage overpayments

Jaffa_cake

Hi all,

We have decided to put our £30k savings down on a £70k house.
Leaving us to find a mortgage deal for the remaining £40k over a 5 to 8 year term.

We are not looking or wanting any thing more than say a £70k to £75k house. (the extra £5k funded by savings from now to next 2 months)

What we do want the ability to do is have unlimited overpayment, and not be hit with penalties.

We plan to pay back the £40k over 2 to 3 years, but would like the assurance that if either one of us lost our job, we could fall-back to the standard monthly repayment.

Does this make any sense at all?

Are there lenders out there that will give, for example a 5 to 8 year term, an be receptive to the fact, we plan a quick repayment?


I know the interest rate would not be great, but for now, that is of secondary importance, in view that we only ask for £40k, and that we plan a 3 year repayment term

Who to approach, which lenders, or a broker?

JC.

Thrugelmir

There's no need to disclose your intentions. Just opt for a mortgage product that has no restriction on overpayments.

We plan to pay back the £40k over 2 to 3 years, but would like the assurance that if either one of us lost our job, we could fall-back to the standard monthly repayment.

Opt for a 10 year term or whatever would be affordable on one income. Then you've the flexibility to overpay as much or as little you wish to.

ACG

Most deals allow you to overpay by around 10% in any one year.

There is the odd deal that will allow unlimited over payments. The alternative would be an offset mortgage, these allow you to use savings to bring the balance down but you can withdraw them again in line with certain conditions should you need.

gallygirl

If you up your budget a little Stafford Railway are perfect:

http://srbs.co.uk/mortgages/buy-to-let/

Minimum of 80k property. Take out over x years and get low monthly repayments but unlimited overpayments. What is really good is that they have no arrangement fee, which could be proportionally extortionate as a % of total loan elsewhere :T. Use their recommended solicitor who is a little dearer than others but is based nearby and nips over the road with the paperwork . Phone them up and you speak to a real person who remembers you by name. Can't recommend them highly enough :T.

Jaffa_cake

Thrugelmir wrote: »

There's no need to disclose your intentions. Just opt for a mortgage product that has no restriction on overpayments.



Opt for a 10 year term or whatever would be affordable on one income. Then you've the flexibility to overpay as much or as little you wish to.

.
I like this,

Thanks

getmore4less

What's wrong with the deal you have with the current lender?

Offset might be worth a look,

With a 3 year plan the rate is not that important.

£40k 3 years.

Interest rate , Monthly, total interest


0% £1111 £0
2% £1145 £1245
3% £1163 £1877
4% £1181 £2515
5% £1199 £3158

Jaffa_cake

getmore4less wrote: »

What's wrong with the deal you have with the current lender?

Offset might be worth a look,

With a 3 year plan the rate is not that important.

£40k 3 years.

Interest rate , Monthly, total interest


0% £1111 £0
2% £1145 £1245
3% £1163 £1877
4% £1181 £2515
5% £1199 £3158

.
.
Don't have a current lender.
This will be a fresh application as "First time buyers"

JC