Overpayment interest question

ro2778ro2778 Forumite
98 Posts
Eighth Anniversary
Forumite
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?

Replies

  • Maybe_its_becauseMaybe_its_because Forumite
    440 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Forumite
    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
    MFW2020 #5 £2,000/2,000 MFW2021 #5 £1,850/3,500MFW2022 #5 £3.001/3,000Sep'12 £233,750 Jan'15 £222,329 Dec’21 £139,584 MFiT T4 #24 £48k/£34k MFiT T5 #24 £22,186/£41k MFiT T6 #24 £4,700/£29k
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