2 Year fixed coming to an end

Incis

Hello ! My 2 year fixed mortgage with Santander coming to an end . I have some money saved up . I phoned them up today and ask them if i have some money to pay can i knock off the mortgage term . The mortgage advisor told me that i can but i have to wait untill the fixed rate ends and capital interest starts and then i have to phone them and tell them that i have some lump summ and want to pay that and knock off the term of the mortgage , because when i am on capital interest i can pay any lump summ and i wont get any penalty charge for that . Is mortgage advisor is right ? Because my work college told me if i will wait till my fixed rate end - i cant change anything after that ... Thanks.

DpchMd

What does your mortgage paperwork say regarding permitted overpayments?

Thrugelmir

Incis wrote: »

Because my work college told me if i will wait till my fixed rate end - i cant change anything after that

I wouldn't take much notice of your colleague. You'll get better suggestions and opinions on here.

Incis

What does your mortgage paperwork say regarding permitted overpayments?
My paperwork says that i can overpay only 10 % of the mortgage value . Thats why advisor told me to wait till end of the fixed and then ill be able to pay any summ i want and i wont get charged for that .

DpchMd

Incis wrote: »

What does your mortgage paperwork say regarding permitted overpayments?
My paperwork says that i can overpay only 10 % of the mortgage value . Thats why advisor told me to wait till end of the fixed and then ill be able to pay any summ i want and i wont get charged for that .

So what are you asking us?

Jhoney_2

There are different options.

1. Whilst you are in the 2 year fixed term, you can only pay 10% mortgage value per year ( that could be calendar or mortgage anniversary so check the details first as its important)

2 As your adviser has suggested, should you wish to pay off more than 10%, you have to wait until your fixed terms ends to do without a penalty charge. You say only 10% so I assume you wish to pay off more, hence your adviser is correct.

Ignore your colleague completely.