Lump sums

james_mortgage_free_wannabe

Hello all, 
My mortgage on my apartment is around 213k. I am set to renew in Oct which, with over payments be around 198k. I have been saving hard this past few years and have a large lump sum which I want to put down when I renew if possible so I can continue over paying and get the mortgage paid off in 5 years. Is that something I can do? 

Moneyminded

It sounds like you are on a fixed deal. Most fixed rate mortgages allow an over payment of 10% of the outstanding balance of the mortgage. Check with your provider to see how much you can overpay by without incurring penalties. If you can overpay now without incurring penalties you might as well as this will save you interest. 

james_mortgage_free_wannabe

Yes you are correct on a fixed 2 year. We are overpaying to the limit now but we hope to switch providers in October. Do you know if before commencing a new deal I can say I want to clear 80k off the balance and then fix for a certain period? or is that a no no. 

woodfired

If you let your current fixed rate end then the majority of lenders allow unlimited over payments when on the standard variable rate.  You could then switch/re-fix the following month with a reduced balance.