mortgage overpayment questions

sanova76

Hi,


I know I should just ask my bank about this but would like to get some info first please.

I'm on fixed rate at the moment and allowed to pay up to 10% overpayment without admin charge.

My questions are:

1. can I make several lump sum payment as long as is within the 10% limit? For example: if my remaining mortgage is 80K, I'm allowed to pay £8000. Can I pay odd amounts now and then? £2000 this month, maybe another £2000 in January?


2. According to my bank website, if I make overpayment more that £5, my monthly mortgage can be adjusted (lowered). Does this apply if I make several overpayment (to reach the £5K) or just straight one off payment of £5K?


Thanks.

San

FTBlalala

I think it depends on your lender t's & c's but I'm with Virgin Money on a fixed rate and can overpay 10% and I can do so at any time for however much, as long as the total of the over payments you make isn't more than 10% of the balance you owe.

For example, I automatically overpay by £79.16 by direct debit to round my monthly payment up to the nearest 100 and then at the end of the month we have a "what we didn't spend" fund that I'll then use for an extra over payment. I have paid £25 up to £354 in this random end of month OP