Best date to overpay halifax mortgage each month?

class2ldn

Just had a look and its quite easy to set up just need my mortgage number so will do that tomorrow then it's overpay away lol

A_Frayed_Knot

class2ldn wrote: »

Thanks for all the replies. I'm 32 now and aim to have it paid off by the time I'm 45 so each time I remortgage I'm looking to reduce the term to get it down. Obviously depends on interest rates etc each time I remortgage but it's doable I think. Just need to keep chipping away at it.
So if i overpay it should show on the online account if I set it up?

It should show up along with the monthly interest added and your agreed monthly payment coming off. Although if you o/p on a Friday, it will go awol for a few days and end up coming off your mortgage account on the Tuesday:( it may disappear out of your account as soon as you o/p, but will not appear in your mortgage account till some time later.


just keep chipping as you will get there. Good Luck:)

class2ldn

Made an op of £100. Did it over the counter as I had to clarify some details for my 0% balance transfer card

A_Frayed_Knot

Nice work - Good feeling - well done:j

nic_santorini

im with first direct and they kind of recommended taking the full term of years we required and then overpay because then if something happened we could stop the large overpayment - i am so glad i did this because the something did happen and we can now stop the overpayment. I would not of been able to reduce a fixed rate mortgage and this has given me so much flexibility. Should we be in a position to overpay again, we will start up again. as for the day, i don't know, i just set my standing order the day my mortgage started.

tiger_eyes

class2ldn wrote: »

Sorry I mean if you reduce the term instead of the amount. I'd rather reduce the monthly payments rather then reduce the term to begin with.

OP, I have a brand-new FTB mortgage with Halifax and it allows me to underpay to the value to which I've overpaid. For example, if I overpay by £1000 now, I can underpay £1000 worth of mortgage payments later to bring us back to the expected balance. Just wondering if you have the same clause in your mortgage because that does effectively provide flexibility in payments.

class2ldn

Yes I believe we have.

pcsel

Quick question on overpayments. If you are on a fixed 2yr lets say £100K mortgage...you can over pay by 10% per annum, correct? which means in the first year you can overpay by £10k. 

If at the end of the year you have paid £10k in overpayments + mortgage payments of say £10k as well, you have paid off £20k of the debt and have only £80k left to pay.  

Now, in the second year does your allowable overpayments reduce to 10% of the new existing debt i.e. £8k or can they stay at £10k? which was 10% of original mortgage amount borrowed?

Thrugelmir

I would suggest clarifying with the lender just to be sure.