Unlimited overpayments

Unicorn_cottage

Hiya

Which mortgage providers allow unlimited overpayments? I am currently with Post Office (Bank of Ireland) and I am limited to paying off 10% of my mortgage each year. I don't like it - ha ha!

UC

BoGoF

Very few will allow more during a fixed rate term...which begs the question why take a fixed rate when you want to overpay more than they allow

Unicorn_cottage

Because situations change. I wasn't told the overpayments were limited to 10% when I took out the mortgage just that overpayments were allowed.

Mortgage_Minimiser

My Nationwide mortgage allows 10% of the original loan, not 10% of the amount outstanding. The original loan was £243,750, allowing a £24,375 OP per annum throughout the original 4 year term.

So, even though I have entered into a new fix with them for 5 years, I can still OP the above amount per annum, even though my mortgage is now into the £190s.... That's the best I have seen if you want larger OPs.

MM
x

Unicorn_cottage

Sounds like First Direct offer unlimited overpayments on fixed rate mortgages...not sure how good the rates are though...

getmore4less

You are not limited to 10% you can pay more if you want.


Very few don't allow unlimited overpayments.

Some come with charges

There are plenty of products out there that give more flexibility to overpay a lot without any charges

The list that allow true unlimited without charges is shorter because that would be finishing the mortgage.

Mr_Stealth

Unicorn_cottage wrote: »

Sounds like First Direct offer unlimited overpayments on fixed rate mortgages...not sure how good the rates are though...

Very competitive is the answer. HSBC is the parent company.

Lomcevak

Unicorn_cottage wrote: »

Sounds like First Direct offer unlimited overpayments on fixed rate mortgages...not sure how good the rates are though...

They do, I've had a 5-year fixed and currently a 2-year fixed, and have been making unlimited overpayments for most of that time. You just do a transfer via online banking, in the same way you'd do any other transfer.

Only restriction is that you will trigger early repayment charges if you pay off the mortgage in full within the fixed-rate period, provided you don't do that then there's no charge for overpayments.


Rates have always been good, I could maybe have found a tenth of a percent less if I'd hunted around and switched, but both times I've looked they've been close to the market best.

aaron54321

I’ve just switched to a tracker mortgage with Santander. 1.69% and I can make unlimited overpayments

Unicorn_cottage

fiisch - I asked for advice and all you offered was bullying behaviour. I have admitted my errors but you won't let it go. Why are you here if you troll anyone who is genuinely in need of answers?

getmore4less

There is no overpayment limit of 10% you can pay off as much as you like it just costs a bit more.

Depending on

cost(including any dates the charges go down),
the mortgage rate,
the rates of your other debt
savings rates

It can still be worth doing larger overpayments.

If you are confident you can maintain higher payments there is always the option to shorten the term.

What is the list of your other debts and rates, overpaying may not be the right thing to be doing.

have you got a decent emergency fund to stop further debts?