Overpayment limits

55 Posts
Had a quick look through a few pages of threads to see if this question has been answered but couldn't see anything.
How is everyone overpaying so much with limits on overpayments?
We have just bought a house but can only overpay 10%, so about £75 per month. This will be just manageable now, and not much more than that at the moment, but when husband works in 2 years after being a student we would be able to overpay much more.
I did a calculator and if I overpaid at 10% forever the term would only reduce by under 4 years.
If you can't overpay more due to limits, do you save the extra money until the end of your deal, then remortgage? Or how do you work out if paying a fee is beneficial for a larger repayment.
How is everyone overpaying so much with limits on overpayments?
We have just bought a house but can only overpay 10%, so about £75 per month. This will be just manageable now, and not much more than that at the moment, but when husband works in 2 years after being a student we would be able to overpay much more.
I did a calculator and if I overpaid at 10% forever the term would only reduce by under 4 years.
If you can't overpay more due to limits, do you save the extra money until the end of your deal, then remortgage? Or how do you work out if paying a fee is beneficial for a larger repayment.
Grocery Challenge Jul £380.75 Aug £637 Sep £539.82 Oct £53.43 / £475
EF 3-6 challenge #104 £739.25/£10000
MFW2018 #183 0/£2000
EF 3-6 challenge #104 £739.25/£10000
MFW2018 #183 0/£2000
0
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EF 3-6 challenge #104 £739.25/£10000
MFW2018 #183 0/£2000
You need to look carefully at the Ts&Cs when you choose your mortgage provider, they don't all offer the same terms.
Edit: A few months ago I was talking to my sister - she lives in Manchester - and she said the same, that the overpayment limit was so high on her mortgage it effectively didn't matter. The overpayment limit for both of us is almost twice the regular mortgage payment!!
EF 3-6 challenge #104 £739.25/£10000
MFW2018 #183 0/£2000
EF 3-6 challenge #104 £739.25/£10000
MFW2018 #183 0/£2000