Which banks allow unlimited over payments

gravitas

Hi all.


Presently looking to move house after successfully paying off the mortgage on our current house and me and my wife starting a family so needing more space!


I know that First Direct offer unlimited over payments but I was wondering if there were any others to save me looking at every firm that comes up on the money super market comparison!


Many thanks!

gravitas

Sorry just to clarify on a fixed rate product!

Edi81

You will struggle to get unlimited overpayments on a fix.
Most are 10% in a year although a couple of lenders allow 20%.
If the plan is to overpay by so much have you considered an offset mortgage?

Thrugelmir

Apply for a shorter term if the aim is to repay the mortgage quickly.

Mortgage_Minimiser

Nationwide have a number of products that are 10% of the original loan during the fix, so for example we are allowed to OP 24,375 per annum. Could be worth a look.

MM

Silvester89

Is there something that puts you off First Direct? We bank with them so made the decision to switch our mortgage to them. Only switched to them fairly recently, but been happy with them so far.

ricky_v

Note that First Direct (and I imagine other lenders offering unlimited overpayments, if there are any others) will levy an ERC if the mortgage is paid off completely within the fix so if the overpayments are so much that it reduces the term to a point where the mortgage ends before the fix ends then expect to pay the ERC. One way to avoid this is to request that any overpayments reduces the monthly repayments and keeping the term of the loan the same.

Mickyh-s

Look at Coventry Flexx Fixed - they are one of the only ones that offer fixed rate with unlimited overpayments.