How do you become mortgage free with capped overpayments?

Pepperoni

If your mortgage has capped overpayments - how do you become mortgage free? Is it a case of saving outside of the overpayments and then seeing what penalties are in place for bigger overpayments? Or paying a lump sum at end of mortgage?

OH manages our mortgage but I work our finances so wouldn't mind getting my hands around how to become 'mortgage free' as its something we would like to do once debt is clear.

Thanks in advance! :beer:

tootallulah

Well each year you pay off the full amount that you are allowed to and you save as much as you can in the most efficient way possible. Then when you can re-mortgage you do so to a much lower amount, and hopefully to a mortgage with unlimited payments allowed. Good luck.

Pepperoni

Thanks, that has really helped.

So when you re-mortgage, can you deduct any savings you have off the then owing mortgage amount - and re-mortgage based on that figure?

tootallulah

Hi you remortgage for a lower figure taking into account what you have saved. most mortgages are tied in for 3-5 years, how long is it until you can remortgage?

StrawberryJam132

Hi Pepperoni :wave:

Thank you for starting this thread. I was wondering the same thing and had no idea you could get a mortgage where unlimited payments are allowed. Thanks tootallulah for the advice