Use past Overpayments for future monthly mortgage cost?

LiveOnce

Hi all,

Is it possible to use past overpayments towards the future monthly costs?

For example:

Let's say you have made £20,000 in overpayments in the past.

Your monthly mortgage payment is £800.

For whatever reason let's say you want to use your overpayments to cover some future 6 months payments (e.g. because you are travelling etc).

Is this possible?

Theguywhovapes

Ask the lender. If they were regular payments that have accumulated overtime, then they should sit on the mortgage as a credit, which the DD would eat into month after month. Even though you won’t be physically making a payment, it won’t register in arrears.

You must check with the lender if it does sit on the mortgage as a credit. If they have recalculated these overpayments at any point. I.e rate change, then the overpayment balance resets itself.

Hope this helps

clairebeth

You would have to speak to your lender, but what they might allow is a 'mortgage holiday' for a specified period? You would still accrue interest in that time, but by having overpaid you still at least soften the blow!

Thrugelmir

Whilst you have overpaid previously. Taking a payment holiday may well be deemed to be arrears. Which would impact your credit profile.

LiveOnce

Hi all,

Thank you all for the useful information. I will check with the lender.

I make small monthly overpayments e.g. £200 on top of my normal mortgage.

And then I make a lump sum overpayment e.g. £10,000.

Would I be able to cancel my monthly overpayment for 6 months and just pay the minimum mortgage?

E.g. Basic £800 mortgage instead of £1,000 where £200 is over-payment monthly.

Dandytf

I have setup Standing Order as required.
E.g. overpayments included for a few years.
This year reduced Standing Order with a small overpayment.
Natioinwide will use overpayments if I were to cancel standing order which I did once for 1 payment only.
I have a small overpayment reserve which in effect I could cancel standing order for upto 9 or 10 months.
Though I prefer this ‘emergency mtg fund’ only if and when required, whilst interest is reduced meanwhile.