Question about recalling overpayments.

rigsby1967

I need a big job done in my house, I've made some overpayments on the morgage over the years, probably to the amount of 10-15 grand.
Can I get back about 5000 of that for the work and if so how do I go about it? I'm guessing it will cost me some kind of admin fee too, any idea of the cost?

Thanks
Rigs

Mortgage_Mark_2

Does your mortgage specifically have this feature? Is it an offset, for example?

rigsby1967

Thanks for the reply.
I've just looked through some paperwork and all it says it's a repayment mortgage.

betmunch

Time to call the lender then.


Anything on here would just be speculation

bowlhead99

Typically overpaying a mortgage (if not an offset with a dedicated cash pot) does not mean they will physically send you cash back the other way if you need it.

However what you can sometimes do is take a payment break up to the value of the overpayments, i.e. how far ahead of schedule you are.

So for example if my mortgage is £2000 a month and I have been paying them £3000 a month for six months, they are tracking that I overpaid by £6000.

If I am then falling on hard times I can ask to underpay by £1000 a month for the next six months or maybe even underpay by £1999 or £2000 for the next three months to 'get back' my value more quickly.

However whether your mortgage deal has these features depends on what product you have from whom.

I'm with Nationwide and can just go and look at my online mortgage statement and it says Current Total Overpayment: £xxxxx.xx

One of the features of the product is "Any overpayments you make within your mortgage’s overpayment allowance will contribute to and build up an overpayment reserve. So if you find you want some flexibility with your monthly payments for a few months, your overpayment reserve could let you ‘underpay’ on future monthly mortgage payments. "

But there's no guarantee your product from your provider has this feature - what the others said above - ask them.

Thrugelmir

rigsby1967 wrote: »

Can I get back about 5000 of that for the work and if so how do I go about it? I'm guessing it will cost me some kind of admin fee too, any idea of the cost?

They may lend it back to you by offering a home improvement loan. You'll need to ring them to see what's on offer. You'll undergo a full affordability and credit check as part of the process.