Overpayment interest question 30 May 2016 at 1:33PM in Mortgage-free wannabe 1 reply 579 views

ro2778

I have a mortgage with Accord and they allow me to make up to 10% early repayment of mortgage capital per calendar year without charge. I recently paid this 10% and when I spoke to customer service to find out the amount I asked them if I had to let them know. They said I could either let them know and my monthly repayment amount would be recalculated straight away or I could just wait for the review early next year and they would alter my monthly repayment at that time.

I thought in order to pay more I would not let them know. I'm currently on a 2 year deal which ends in Feb 2017 and because the early payment window is per calendar year I think I'll be eligible to pay off another 10% in January before moving my mortgage to the best deal in February. Am I doing the right thing in not letting them know about my early repayment to maximise how much I can pay off without charge, and how do I smoothly move to my next mortgage?

Maybe_its_because

We are with Accord.

We didn't op the 10% limit so this might not apply to you but I did discuss the first OP with them. They asked if I wanted to update the monthly repayment which I said yes to but asked them to increase it back to the old repayment amount. Which they did. I found them quite accomodating

Is that an option for you?

Are they aware that your OP is a capital repayment as I've talked to other OP-Ers whose bank just held onto the ££ and didn't take it from their account... Ie has your "my balance" gone down by the right amount post-OP?

Not sure if any of that helps with your query?

MIB x