Mortgage Overpayments

Microhead

Hi all and happy new year!

I am a first time buyer and currently 5 months into a 5 year fixed rate deal. The mortgage is over 26 yrs.
I am looking to start making overpayments on the mortgage (haven't decided on monthly or a one off payment every yr, but as my interest is calculated daily, I guess monthly is the best way to go???), but I want to find out if its possible to ask my bank to keep both my regular payments the same AS WELL AS keeping the 26 yr term the same while overpaying as well???
I.e. let's say my regular payment is £650 p.m. but I want to put on an extra £80 p.m., but I don't want my regular payments to go up or the term reduced.

Hope this makes sense.:)

Any help or clarification would be greatly appreciated as I have a confused head on this right now.

ViolaLass

Best to ask your bank. My bank (Nationwide) allows what you want.

greent

I did this with my lender (Lloyds - was C&G - think H*fax mortgages are with them now, maybe?)

A_Frayed_Knot

Who is your lender?

Mine will allow this BUT you have to tell them, otherwise they will lower your monthly payment to compensate for your o/p keeping the same term.

They also give me 2 options if I ever needed them; a) reduce my mortgage payments until the o/p total has caught up or b) take a holiday period from paying the monthly mortgage until, again, the o/p total has been reached.

With both options you need to tell them in writing,

Oh, and if interest daily then pay asap - no need to wait till end of month. Best advice I ever got on here was, as soon as you o/p even a £, its a £ you will never pay interest on again.

Microhead

My lender is Coventry BS

anna42hmr

Microhead wrote: »

My lender is Coventry BS

looks like they have the info on their website,

http://www.coventrybuildingsociety.co.uk/mortgages/existing-members/mortgagefaqs.aspx

the sections you need are under paying off all or part of your mortgage (then questions can i pay extra towards my mortgage and how do overpayments work