Can I make a lump payment without penalty between mortgage terms?

We're about to sort out a new mortgage deal for 2 or 5 years, rather than going onto a variable rate when the current deal ends in January. But I can't find an answer to this anywhere - can we make a big ole lump payment between deals without paying a penalty? I realise now that we should really have been overpaying by the allowed % all along, but it's been a busy couple of years and I'm only looking at it properly now. We've built up some decent savings, don't need to spend them on the house in the near future, so feel like we might as well knock a chunk off the mortgage, then continue saving for the new kitchen etc. Off-setting might also be a possibility, but the set-up fees reduce their attractiveness.


  • caeler
    caeler Posts: 2,605 Forumite
    Mortgage-free Glee! Photogenic Name Dropper First Post
    I wouldn’t have thought so if you are switching with current provider. As at any point you are either on old deal or new deal and relevant overpayment terms will apply. Maybe with a new provider? Your probably best to ask the provider what they’ll allow. 
  • We've done this both times we've remortgaged.  However we did change provider and requested a lower mortgage amount and had to add savings before the new mortgage went through.
    Mortgage start date Nov 2014  - £90,545 over 25 years
    Re-mortgage Oct 2017 - 78,295 over 23 years
    Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
    Current Mortgage Outstanding Middle December 2020 - £
    47893.35 - a reduction of £42,652 in just over 6 years!  

  • Petriix
    Petriix Posts: 2,036 Forumite
    First Anniversary First Post Name Dropper
    It's worth speaking to your lender. I can't see how they would be able to prevent you from doing this, even if you had to briefly go on to the SVR before starting your next fix. It's also worth checking your overpayment limit: our mortgage allows upto 10% of the original balance to be overpaid (on top of to regular payments) every year, so that allowance may be sufficient for your overpayment.
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