Advice sought on overpaying mortgage

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Hi, We have just reduced our mortgage payments by £345 per month after having been on standard variable rate since 2008. We'd like to take some of that and overpay the mortgage but only to reduce the capital. We have just moved to a fixed 5yr deal at 1.89% but there doesn't seem an obvious way to overpay.

What we'd like is a savings account that we can can pay £150-£250 into monthly depending on what we have left (a sort of sweep into a savings account) and then use all or some of the annual saving to pay some capital off. There is an array of different savings accounts out there and frankly I'm a bit lost between ISAs and easy access accounts etc etc.

Anyone doing similar, or have any ideas on what might suit us best. We are with Santander for the mortgage, Natwest and Halifax for current accounts.

Thx Jack
Kind Regards, Jack

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  • EdGasket
    EdGasket Posts: 3,503 Forumite
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    You need to establish whether the mortgage deal you have agreed to allows you to repay early or not and if so whether interest is adjusted right away or only yearly. Then you'll be in a better position to know what to do. Ask the mortgage company how you can overpay and when the interest would be reduced from the overpayment.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
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    grocerjack wrote: »
    We have just moved to a fixed 5yr deal at 1.89% but there doesn't seem an obvious way to overpay.

    Have you tried going to Google and typing "how to overpay Santander mortgage"? The first few hits seem to cover the process.

    Alternatively, if you don't want to pay extra as you go along but simply let it build up in a separate account and decide annually how much of that you'd like to use to pay down the mortgage, the simplest thing is probably a "regular saver" account. There is a thread on this forum or articles on the main site covering the top ones.
  • grocerjack
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    bowlhead99 wrote: »
    Have you tried going to Google and typing "how to overpay Santander mortgage"? The first few hits seem to cover the process.

    Alternatively, if you don't want to pay extra as you go along but simply let it build up in a separate account and decide annually how much of that you'd like to use to pay down the mortgage, the simplest thing is probably a "regular saver" account. There is a thread on this forum or articles on the main site covering the top ones.

    Yes it does appear that overpayments can be made if I have the mortgage account online. No hints about overpayment limits, but I will deal with that when the paperwork is signed for the new 5 year deal.

    Now just need a decent vehicle and perhaps a Santander Easy Saver account is all I need.
    Kind Regards, Jack
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