overpayment twice in one year

Helencartledge

Hello,
I have just discovered mortgage overpayments (yes I’m a bit late to the party) and repaid 10% of my remaining balance. My fixed term Halifax Mortgage ends next month , July, and I am remortgaging to hsbc. will i be able to repay another 10% with Hsbc or Can this just be done one a year regardless as to provider.

Thank you for your help

Exodi

If you're remortgaging to another lender then you are under a new contract and your previous over-payments are irrelevant to the agreement.

Also don't assume that every lender will allow you to over-pay 10% (though most do), always check your mortgage terms.

muhandis

The clock will restart with the new lender, so you should be able to overpay from day 1 (assuming your particular HSBC product allows fee-free overpayment upto 10% of opening balance, HSBC call it the Annual Over-payment Allowance (AOA) and should be referred to in your mortgage offer).

However, if you do have funds in hand right now before the remortgage, it would be worth seeing if you could use those to remortgage to a lower LTV and interest rate.

Helencartledge wrote: »

Hello,
I have just discovered mortgage overpayments (yes I’m a bit late to the party) and repaid 10% of my remaining balance. My fixed term Halifax Mortgage ends next month , July, and I am remortgaging to hsbc. will i be able to repay another 10% with Hsbc or Can this just be done one a year regardless as to provider.

Thank you for your help

getmore4less

You do realise that during the switch you can pay off as much as you like without limits?