New mortgage questions

Suffolksteve1

Hello,

Having recently exchanged were due to complete In the middle of next month, we have a mortgage with santander fixed at a low rate for two years and I had a couple of questions if anyone could help.

I understand we need to wait for completion to find out when the first payment's due and just how much it'll be, although I'm expecting a larger than usual first payment.

We are paying a fairly decent sized deposit, but over the last few months waiting to get to the final stage we have saved an extra £10,000 so I'd like to pay that early (I am fully intending to keep a seperate emergency account with a years worth of bills in it and have allowed for moving and new house expenses) from reading the mortgage offer we can overpay by 10% every year, so I'd like to make sure that payment goes through as soon as possible after exchange to benefit from less interest and also to make sure it gets allocated to this years overpayment "allowance". that bit seems straight forward, the bit I was struggling to find an answer for is we'd also like to make regular over payments going forward, to keep taking advantage of the low fixed rate and overpay by around £200 a month, are you usually allowed to ask to raise your direct debit by that amount? Or do you have to continually ring and request the overpayment is taken?

Rachel87

I have a mortgage with Nationwide and I set up a standing order (this is separate to the direct debit) to pay extra every month automatically. I imagine it would be the same for most lenders? Hope this helps

amnblog

A little puzzled at why you do not just borrow £10,000 less?