Interest only mortgage & Overpay, Endowment or High Interest Savings Account

banks4u

Oh the good old days I used to underwrite for a similar company. People would self cert an amount but it wouldn't match the inland revenue. Why don't you remortgage what do you earn and how old are you.

JimmyTheWig

mrsmoneyworries wrote: »

I have spoken to the Mortgage Company and have been told that we can overpay a minimum of £25 per month, up to a maximum of 1%. It will come off the capital balance.

Does this sound average?

chelseablue wrote: »

That doesn't sound like very much


I'm with Halifax and can overpay by 10% of the balance each year.

If that's 1% per month (I think so from the OP's wording, but not sure) then that's more than your (and my) 10% per year.

JimmyTheWig

mrsmoneyworries wrote: »

Interest rate is 2.5% for £165k

Interest rate is 2.25% for £5k

Personally I'd put the money into the bank and earn 3% (now tax-free) rather than save 2.5%. But I also understand the psychological boost of seeing your mortgage balance come down each month.

chelseablue

JimmyTheWig wrote: »

If that's 1% per month (I think so from the OP's wording, but not sure) then that's more than your (and my) 10% per year.

That would make sense! Not sure why I thought 1% a year. Its been a long day

Thrugelmir

mrsmoneyworries wrote: »

It's Mortgage Express (which we now realise isn't the best option the Mortgage Advisor could of used).

If the mortgage was self cert then the number of generous lenders was more limited that people envisage.

mrsmoneyworries

I did get the impression we were talking monthly amounts, however, she is sending me some paperwork out to clarify. Although, as i'm not good at waiting, I will call them up later today.

mrsmoneyworries

Banks4U - Sorry if I wasn't clear. We actually needed a signed letter (& other documents) from the accountant to say we earned what was on the amount we put, which was the same as Inland Revenue paperwork. I presume all lenders want these additional details, so am confused why you think we lied about income? We were told that because DH is self-employed, we had to have a self-cert mortgage (whether that is right or wrong, I trusted the financial advisor to give us the correct information)

If you look at my previous posts, we appeared to be sold (by the Mortgage advisor at Countrywide) the wrong type of product and I don't know why we went down the route we did.

We are 40.

There are other reasons it won't be as straightforward now, which is why I don't know the best way to go.

mrsmoneyworries

JimmyTheWig wrote: »

Personally I'd put the money into the bank and earn 3% (now tax-free) rather than save 2.5%. But I also understand the psychological boost of seeing your mortgage balance come down each month.

That's the option I can't let go of.

steeeb

mrsmoneyworries wrote: »

That's the option I can't let go of.

Then do this...

Save in a 3% saving account until you get to X amount - to provide you a buffer if you ever need the money.

Then overpay in to the mortgage.

Visit the mortgage free wannabe board and do little things to put into the mortgage and try get it down a bit quicker. You might even pay it off before having to use the emergency savings you first put into the savings account.

mrsmoneyworries

steeeb wrote: »

Then do this...

Save in a 3% saving account until you get to X amount - to provide you a buffer if you ever need the money.

Then overpay in to the mortgage.

Visit the mortgage free wannabe board and do little things to put into the mortgage and try get it down a bit quicker. You might even pay it off before having to use the emergency savings you first put into the savings account.

I will look at this option in more detail today.

Don't know why I never thought to use that board, however, will nip over and have a look.