overpay mortgage

adamcarvell

hi we are looking to overpay £100 a month on our mortgage after xmas also i can get a new deal in early December hopefully lower rates had our house valued at 240k so good ltv .
is it best to spread the overpayment over all three parts of our mortgage or just the one or two ? if so which is the best thing to do please ?

Outstanding balance: £45,479.02
Outstanding balance:£21,435.13Help
Repayment method:Repayment
Remaining mortgage term: 8 years 1 month
Early repayment charge:£1,071.76

Interest rate:3.39%
Product end date:03/04/2019

Outstanding balance:£20,848.82
Repayment method:Repayment
Remaining mortgage term: 8 years 1 month
Early repayment charge:£1,042.44

Interest rate:3.39%
Product end date:03/04/2019
Outstanding balance:£3,195.07
Repayment method:Repayment
Remaining mortgage term: 8 years 1 month
Early repayment charge:£159.75Help

Interest rate:3.39%
Product end date:03/04/2019

Thrugelmir

Appears to make no difference as the sub accounts (products) are identical. Other than the last account may have a limited ability to overpay given the remaining balance. With the other two accounts there shouldn't be an issue with a £100 monthly overpayment. Check the account terms and conditions though.

Have you asked your lender how they would treat an overpayment?

adamcarvell

no i haven't spoken to Santander yet was going to after December the 4th as that's four months before our deal finishes and we can sort a new hopefully lower fix. the reason i asked last year i paid a lump sum off from mr redundancy and they asked me which part of the mortgage you want the lump sum from i chose 10% off each part at the time.
do you think i can get a better rate now ? lower than 3.39% which is what we are currently on.

Thrugelmir

adamcarvell wrote: »

lower than 3.39% which is what we are currently on.

As of today you would have thought so.

If you've already overpaid by 10% within the past year then you may breach the annual limits.

adamcarvell

If you've already overpaid by 10% within the past year then you may breach the annual limits.

no we be fine as it was last December .our overpayments are from January to December every year and we starting to over pay January 2019.

Begsey

We went to another lender this year, and the 3 parts are now one.
Went with Nationwide in April, got 1.89% fixed for 3 years. Think it's 2.19% right now.
Nationwide also let us overpay 10% of the original amount every year of the fix. 50k mortgage, could over pay 5k every year.

adamcarvell

i believe you can start looking for new deal 4 months before the current one finishes which for us is December the 4th. should we get the cheapest five year fix now or wait till next April after Brexit if that happens?. i know they keep sayin rates are going to rise.

adamcarvell

as from today i can change my deal online with santander they offering a five year fix no fee at 2.29% is that a good offer ?

Thrugelmir

adamcarvell wrote: »

as from today i can change my deal online with santander they offering a five year fix no fee at 2.29% is that a good offer ?

How much better would another offer need to be to cover the cost of remortgaging? Costs can soon mount up. Exit fee, valuation fee, legal fees etc.

adamcarvell

if i go with this deal do you go straight onto the new deal or start when my other one finishes on April the 4th 2019 ?.

Begsey

As said, I'm now with Nationwide. My previous remortgage in 2016, I stuck with RBS.
Signed up for it online in January, it didn't change until 31st March (when my 2 year deal had ended).