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Mortgage over payments - have I covered everything that I need to?
LouiseC1976
Posts: 4 Newbie
Hi All,
I'm making over payments on my mortgage with the aim of paying it off early. I've spoken to Santander (my mortgage provider) and they've told me the following and I just wanted to make sure I've covered everything that I need to in order to get the most out of the over payments as this is all new to me and I don't really know what I'm doing:
1) My mortgage is a tracker mortgage with no limits so I can over pay as much as I like without any incurring any penalties.
2) My over payments are applied directly to the mortgage, none of it goes to the interest and it all comes off the capital.
3) The interest is charged daily.
My mortgage payment is paid by direct debit on the 1st of each month and the over payment is paid by standing order on the 1st of the month.
Is there anything else I need to check with them or have I covered everything that I need to. Any advice would be greatly appreciated.
Kind regards,
Louise.
I'm making over payments on my mortgage with the aim of paying it off early. I've spoken to Santander (my mortgage provider) and they've told me the following and I just wanted to make sure I've covered everything that I need to in order to get the most out of the over payments as this is all new to me and I don't really know what I'm doing:
1) My mortgage is a tracker mortgage with no limits so I can over pay as much as I like without any incurring any penalties.
2) My over payments are applied directly to the mortgage, none of it goes to the interest and it all comes off the capital.
3) The interest is charged daily.
My mortgage payment is paid by direct debit on the 1st of each month and the over payment is paid by standing order on the 1st of the month.
Is there anything else I need to check with them or have I covered everything that I need to. Any advice would be greatly appreciated.
Kind regards,
Louise.
0
Comments
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it will be better to pay the overpayment as soon as you have the money.
keep an eye on the regular payment and the ERC limit.1 -
Keep an eye on the direct debit which comes out, just in case they reduce the monthly payment because of you making the overpayment.
If they do reduce it, send the extra over to them.Mortgage started 2020, aiming to clear 31/12/2029.1 -
Well done but have you got any other expensive debts or loans ?
Do you have a good company pension which you might be able to pump more money into and get the tax relief and maybe a little more from your employer.1 -
What is the ERC limit please?getmore4less said:it will be better to pay the overpayment as soon as you have the money.
keep an eye on the regular payment and the ERC limit.0 -
LouiseC1976 said:
What is the ERC limit please?getmore4less said:it will be better to pay the overpayment as soon as you have the money.
keep an eye on the regular payment and the ERC limit.
That will be detailed in your mortgage terms, tends to be 10% overpayments per year otherwise you have to pay additional fees.Mortgage started 2020, aiming to clear 31/12/2029.0
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