Mortgage & OverPayments

dosh1

My fixed rate mortgage comes to an end on 31st July 16. I have already made 10% over-payments so unable to make any more before this contract expires.

New 2 and 5 year fixed rate options are available to me which I shall be considering (probably 5 year in light of recent events).

I want to make a further over-payment into my account before I sign up for a new contract and so will have to wait until 1st August when mortgage reverts to variable, make an over-payment of 30% of mortgage and then sign up for a 5 year fixed contract.

Has anyone experience of similar. Presumably the mortgage company won't pull the deals currently available once I revert to a variable on 1st August and they shall remain available to sign up to at no additional cost to what is currently being charged to change e.g. £995. I am also hoping things don't plummet as a result of the referendum so that the above won't be available or possible.

Any thoughts would be welcomed.

Boredatwrork

Call them and ask them if they can start the date from a week later, to give you time to make the payment, they can only say yes or no. Five minute phone call will clear that up most likely.

or just make they payment once the switch has happened (if you dont think you will max out the next year).

dosh1

Boredatwrork wrote: »

Call them and ask them if they can start the date from a week later, to give you time to make the payment, they can only say yes or no. Five minute phone call will clear that up most likely.

or just make they payment once the switch has happened (if you dont think you will max out the next year).

I wondered whether forewarning them may result in them pulling it and not offering such a good deal? The amount I want to overpay is greater than the max for the year.
ALSO
The fixed mortgage ends on 31st and my next mortgage payment is the 1st. I doubt they will delay the payment by 3 weeks hence why I need to revert to variable for one month.

sitesafe

I was thinking along similar lines a few weeks ago...I'm approaching the end of a 5 year fix with Santander. I didn't know whether to overpay the annual limit for the final year fix during the fix which ends in August, or whether to wait until it went into variable where i would assume i could have paid what i liked.....as the limit is based on the balance at the beginning of the year but SVR falls in August and I could presumably pay as much as i wanted at that point. I was too cautious to wait and see but maybe I should have.

If you overpay the large amount you want to during SVR then its maybe best to consider whether your previous offers were based on your mortgage balance at that time as that will have changed quite significantly once you've paid the lump sum off? It might take you into a new LTV category which will possibly give you a better deal but you have to be careful as some deals are based on you having a minimum balance...

AnotherJoe

Have you asked them for a new retention deal based on an amount including whatever the 30% payment would bring it down to? Eg if you currently owe £100k ask them for a retention deal on £70k.

Boredatwrork

dosh1 wrote: »

I wondered whether forewarning them may result in them pulling it and not offering such a good deal? The amount I want to overpay is greater than the max for the year.
ALSO
The fixed mortgage ends on 31st and my next mortgage payment is the 1st. I doubt they will delay the payment by 3 weeks hence why I need to revert to variable for one month.

If you call your bank, (most likely a call centre), they arent going to try and haggle, they are office staff, dont mention a deal, just ask a "what if.." regarding paying on the svr. You are not asking anything irregular,