Hi all - re my previous query. My mortgage company has said:
"you
are able to make lump sum payments to your mortgage account as frequently as
you wish, without incurring any penalties. Any payments received of £1000.00 is
classed as a lump sum payment and will result in your monthly payment being
recalculated".
They have also said that any overpayments I make will go towards reducing the balance.
Martin has advised that one should always tell lender that you want your overpayments to reduce the term of the mortgage. Am I right in thinking that reducing the balance is the same as reducing the term? I just want to make sure that any overpayments I make are being used in the correct way. Thank you
Term is not relevant it is the payments that decide how long your mortgage is
All the term does is set the minimum payment which is what MSE are trying to say, but far better to keep the longer term and increase the payment(upto ERC limits)
£126k 8y at 2.44% I would look at getting that rate sorted it is way to high for 37% LTV.
On repayment schedule that would be £1470pm and total interest £13k
Should be able to get 1.5% get the interest down to £7.5 with the same payment
At 58 and nearing retirement age, although I hope to carry on working for a few more years after retirement, I am a bit wary about remortgaging, wondering if I could remortgage at this age. I don't have any debts, have some savings and have a works pension (not final salary). I also like the flexibility of an "Interest Only Mortgage" rather than being tied down to a "Repayment Mortgage".
Would I be able to remortgage? What sort of lenders and what are the costs involved in remortgaging if I could take this route?
After making a one-off £20000 overpayment into my interest only mortgage account, my monthly dd payment reduced to circa £204. I have subsequently for the past 3 months been making monthly overpayments of about £1100. My overall balance is reducing but my monthly dd payments have remained the same at £204. Is this correct? I thought that as i overpaid and reduced the balance, my monthly interest payments would also reduce.
Do you have an online account where you can see what the payments are going to? The interest should be reducing and the odds left over will probably be reducing the balance. If not then just give them a call to confirm.
Mortgage started August 2020 £69,700 Mortgage ends Aug 2050 MFW: Aug 2027 Current Balance: £62,999 MFW2020 #156 £723.13 MFW2021 #26 £1184.71 MFW2022 #11 £197.87 MFW2023 Backup/ Neutral fund £1351/£1000
Replies
All the term does is set the minimum payment which is what MSE are trying to say, but far better to keep the longer term and increase the payment(upto ERC limits)
£126k 8y at 2.44% I would look at getting that rate sorted it is way to high for 37% LTV.
On repayment schedule that would be £1470pm and total interest £13k
Should be able to get 1.5% get the interest down to £7.5 with the same payment
At 58 and nearing retirement age, although I hope to carry on working for a few more years after retirement, I am a bit wary about remortgaging, wondering if I could remortgage at this age. I don't have any debts, have some savings and have a works pension (not final salary). I also like the flexibility of an "Interest Only Mortgage" rather than being tied down to a "Repayment Mortgage".
Would I be able to remortgage? What sort of lenders and what are the costs involved in remortgaging if I could take this route?
Mortgage ends Aug 2050 MFW: Aug 2027
Current Balance: £62,999
MFW2020 #156 £723.13
MFW2021 #26 £1184.71
MFW2022 #11 £197.87
MFW2023
Backup/ Neutral fund £1351/£1000