Mortgage Overpayments

chapster86

Hi Guys,

I'm looking for the best mortgage where I can overpay? Is it an offset mortgage? My friend keeps talking about an Australian mortgage? Basically, some months I earn big chunks of commission where I could put £5k+ in and I'd like to throw that into the mortgage, without being hit by huge overpayment penalties.

What is the best kind of mortgage for this?

Cheers

Thrugelmir

Perhaps a tracker mortgage. As the product you are seeking needs to be free of overpayment restrictions.

amnblog

Years ago people referred to offset mortgages as Australian Mortgages. Not a phrase I have heard for a while now.

There are a few lenders that still offer offset products. They are priced a few points about the standard tracker products so you need to be confident you will use the offset facility regularly.

greggymagic

First Direct are pretty good as they have unlimited overpayments - you cant draw the cash out again if you need to like an offset mortgage but you don't get penalised for making big overpayments.