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End of my 1st fixed term mortgage - stupid question follows

stanthemannn
stanthemannn Posts: 7 Forumite
in Mortgages & endowments
Hi, approaching end of 4yr fix w Nationwide. Starting to look around for new deal. I have saved a lump sum and would like to reduce mortgage with next lender. I will be penalised by current lender for size of overpayment. Can i somehow pay off a chunk 'between' mortgages if that makes sense? Thanks

Comments

  • Verix
    Verix Posts: 241 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    When your deal ends with Nationwide you will be put on to their standard variable rate. This should allow you to overpay as much as you like as there will be no early-repayment charge. Alternatively if you look around you may find a product with a new lender that won't penalise for your overpayment.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • nobblyned
    nobblyned Posts: 705 Forumite
    Easiest way is to remortgage for the smaller amount, paying off the old mortgage partly from the new and partly from savings. Very standard and your solicitor will arrange.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Lets say you have £100k mortgage and £20k savings, you remortgage for £80k, solicitor will ask for £20k from you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why wait? Does your product allow you to make overpayments now.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Thrugelmir wrote: »
    Why wait? Does your product allow you to make overpayments now.

    See original post :D
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AnotherJoe wrote: »
    See original post :D

    OP said approaching. ;)

    Never wait until tomorrow what you can do today.
  • stanthemannn
    stanthemannn Posts: 7 Forumite
    Many thanks everyone. Definitely needed the example Another Joe! :) And Thrugelmir I am currently overpaying by the agreed limit. Over that and I get penalised! Thanks again helpful people!
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Now Nationwide have some very good deals so check with them what deals they have for existing customers.
    You can pay a Lump sum off the mortgage at the end of the fix before starting the new deal. Speak to Nationwide
  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dimbo61 wrote: »
    Now Nationwide have some very good deals so check with them what deals they have for existing customers.
    You can pay a Lump sum off the mortgage at the end of the fix before starting the new deal. Speak to Nationwide
    Seconded. ^
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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