Lump sums

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? 

Replies

  • MoneymindedMoneyminded Forumite
    270 Posts
    Third Anniversary 100 Posts
    Forumite
    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. 
    • Original mortgage end date: March 2041
    • Current mortgage end date: Jan 2033 (aiming for October 2025)
    • MFW 2023 #15 £5,077.77/ £10,000 /// 2022 #15 £7,315.24/ £7250 /// MFW 2021 #15 £8,530.07/ £8500
    • Daily interest is currently £2.69
  • 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. 
  • woodfiredwoodfired Forumite
    335 Posts
    Fifth Anniversary 100 Posts Name Dropper
    Forumite
    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.
    New Mortgage: £240 999 7/2/20
    Current Balance: £ 218 000

This discussion has been closed.
Latest MSE News and Guides

Martin and MSE campaign win

April's 20% energy price guarantee hike postponed

MSE News

Childcare budget boost

More support for children from nine months and those on Universal Credit

MSE News

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools