Unlimited overpayments?

chelseablue

Currently with Halifax, fixed rate until March next year, overpayments capped at 10% per year

Just wondering, are there any mortgage providers that offer fixed rates where you can make unlimited overpayments?

chelseablue

Currently with Halifax on a fixed rate, ends March next year.


Overpayment cap of 10% a year.


Are there any mortgage providers that offer fixed rates where you can make unlimited overpayments?

getmore4less

Fixed rate offset allow unlimited reduction of the debt that accrues interest, same thing in practice.

Rafter

Some providers do Early Repayment Charge (ERC) free fixed rate mortgages too.


Particularly if you are planning to make a very significant overpayment, watch our for paying big up front fees too - you might find these are almost as much as the interest you will be paying and therefore not offer a great deal that they first appear.


R.

ReadingTim

Doubt it - the mortgage provider is taking a risk that rates could rise during the fixed period, and if they did, they'd be losing money/profit on lending it to you at that fixed rate. Limiting overpayments limits their losses during the fixed period, which is why they're imposed - mortgage providers exist to make money for their shareholders after all!

kingstreet

I can think of one with no ERCs on its fixed rates, so they aren't great and another with 20% ERC-free overpayment facilities.

The other option is to take a mortgage on a part-fix, part-tracker basis where the tracker has no ERCs and repay that part of the mortgage without penalty when you want.

Westminster

I've merged your two threads together as they are essentially the same question.

erin110

There is a currently a lender that is offering penalty free fixed rates so this will allow you to make unlimited overpayments.

Glover1862

Try Coventry Building Society, their flexx product allows this, you pay a little extra but not much.

dano17439

My current Barclays mortgage offers unlimited penalty free overpayments. However it was an old ING Direct mortgage which Barclays took over. Doubt many exist like this now

chelseablue

Thanks all.


Its not an issue at the moment (don't think I'll be overpaying £24,000 this year!)


But when our son goes to school and the childcare fees drastically reduce hopefully we'll be overpaying quite a bit