When Can You Repay Your Mortgage Penalty Free?

rosieraspberry

My mortgage is due to come off the fixed rate and go onto the standard variable rate in Oct 18. Does this mean after Oct 18 I can repay large chunks or the full balance of my mortgage penalty-free?

Carrot007

The full thing. Yes.

Chunks. Depends, there wil lrpobably be a monthly or yearly maximum.

ThePants999

No, there shouldn't be any maximum chunk after the fixed term. Once on the SVR, it's likely you'll be able to overpay however much you like, whenever you like.

Of course, you won't want to stay on the SVR!

kinger101

You'll likely need to find a new product if you're moving onto SVR, so you might as well wait until then if you're paying off a really big chunk (most lenders allow 10% capital repayment each year without penalty.....but you need to check).

Many lenders will let you move onto a different product in the last few months of the fix without penalty (to retain your business).

Boredatwrork

The norm is once on the SVR you can pay as much as you want off with no penalty. However as SVR's are not a great rate, once the amount is paid off, get on another deal asap.

I am in the same boat in a few months I will call the banks early and advise them I want to change product but also make a large OP, I will try to put the product transfer back one week to allow the money to go through, as you are not paying anymore and as long as your circumstances haven't changed, this hopefully should be a fairly swift process, I have done this before with a rival bank and the new product was done within 48 hours.