SLLM (Single Lady Large Mortgage)

Sistergold

Thank you @LadyWithAPlan everything is looking better by the month! 

Mysaving

Hi Sistergold, good you are being offered lower rates than before. Just to add to your many options - have you considered switching to a mortgage with unlimited opverpayments like FD? 

Sistergold

Hello @Mysaving, for me to switch to that kind of product with no overpayment limits I have to go through process of talking to their mortgage team. After going through their appointment I am not even confident that I will get a product with a better rate than what they have given me at present as what I am moving onto is at 5.74% and their switch was at 4.59% with 4% penalty. I suspect for a product with no penalties their interest rate will be over 5%. I am a bit out of steam at the moment to go through any formal processes only to see what I will be offered. 

The 5.74% that have offered is below their 6.49% SVR.

Mysaving

Oh my bad. I didnt realise there's a switching penalty even at the end of a deal. Ultimately, it seems the offer from your current provider is actually quite good in the grand scheme of things.

Sistergold

Oh no @Mysaving, there is no penalty for switching. I think it’s probably me not getting the explanations right. I can switch for free from 4 months to the expiration of my product. They have been giving me the nudge for to switch. The have sent letter texts and phone calls. Finally as I have not switched they sent me what they will now move my mortgage to.

The issue is online when I login and choose to switch they then give me a list of what they can offer me. This time around when I have been looking they mostly offer me fixed term deals. The fixed term deals all come with penalty for overpayments of over £999.00(maximum allowed per month). The least penalty so far has been sometimes 3% most times 4% for a 2 year deal. If I want a fixed term of more than 2yrs it can be as high as 6%. 

Also if I choose a product to switch to, in the last months I can overpay as much as I want without a penalty as the product is transitioning. So yes no penalty for switching, also yes no penalty for OP once switch product is chosen. The issue is I can not make the overpayment this month making me not to switch also not to even discuss a new product. 

With the way it’s looking as the product they have given me (due to the low LTV) is not too bad so not too much pressure. Their standard variable rate would have made me to consider more options. 

LadyWithAPlan

Great you have all this in hand

Mysaving

Hi @Sistergold thanks for taking the time to explain. I hope it turned out well in the end. 

These next few months, no overpayments on my end. I'm focusing on paying down some 0% interest credit cards before the promotional rates expire early next year. It was a bit silly of me to only make the minimum payment each month and not notice the balances creeping up to the max, while I saved for large overpayments.  I'm glad and motivated though to have greatly reduced my mortgage balance and can relax a bit on that front. 

Sistergold

Thanks @LadyWithAPlan
yes credit cards can easily creep up so it’s good @Mysaving that you are clearing tg before the 0% ends.