Halifax mortgage overpayment borrow back

technopersia

Hi,

My parents have a mortgage with Halifax and they have been overpaying for years. They recently (last year) made a 15K overpayment however due to their low earnings they couldn't reduce their mortgage term further which effectively means they could make more money on the interest on the sum than from the mortgage savings.

I am looking to buy a house and they were wondering if it is possible to borrow back the money to give to add to my deposit.

Thanks

Elfbert

I'm confused...

They overpaid.
You (or they) think they could now get a better rate of interest in savings than the interest rate on their mortgage (possible, if their mortgage is on a low rate.)
...But they don't want to put it in savings, they just want to give it all to you, despite them having low earnings?

Where would that leave them? Still all the mortgage to pay, and with no 15k savings?

technopersia

Sorry, I think I didn't explain well.

Basically, is it possible to get any "lump sum" overpayment back going back up to the original monthly payments before overpayment?

My mum is in part time employment hence the low earnings and dad is self employed but most of the money is earned abroad. So no money issues rather proof of earning issues. but not important in this case.

Elfbert wrote: »

I'm confused...

They overpaid.
You (or they) think they could now get a better rate of interest in savings than the interest rate on their mortgage (possible, if their mortgage is on a low rate.)
...But they don't want to put it in savings, they just want to give it all to you, despite them having low earnings?

Where would that leave them? Still all the mortgage to pay, and with no 15k savings?

AnotherJoe

Your parents should call Halifax and ask. Most likely the answer is no since they dont want a mortgage to be a bank account, there are products for that.

Your parents could probably pay less per month and hand the difference over to you, but I guess that doesn't give you the lump sum you'd like to take off them?

glosoli

Check their offer document for details relating to borrow back.

It may say something like its possible to borrow back funds as long as they are not within a concessionary period or something like that but they would need to call to be sure.