Advise on mortgage payments/interest rate

kejij

Can someone advise on this please. I  I recently got a mortgage in April 2022, and because I had some defaults on my credit file dating 2017/2018, I could not get a mortgage from a high street lender. The mortgage is fixed for 5years, so hopefully, in 5year's time, I will be able to move over to one of the high street lenders and move to a lower rate.

My question is, I have some free cash, and I am not sure if it is advisable to pay more on my mortgage now and reduce the monthly payments or wait until I move over to a high street lender in 5 years to do this. Any advise please? Thank you.

ACG

Who is the lender? 
A lot of the specialist lenders do not allow over payments. So you could find you make a lump sum payment and end up getting charged up to 5% for the privilege. 

Tom_Ballard

All mortgage providers are required to permit you to overpay by 10% per annum without charging a penalty. @kejij depending upon your rate I would invest the cash into your property to benefit from capital appreciation, increasing your potential LTV in ~5Y whilst also giving you a better place to live! 

K_S

Tom_Ballard said:

All mortgage providers are required to permit you to overpay by 10% per annum without charging a penalty. @kejij depending upon your rate I would invest the cash into your property to benefit from capital appreciation, increasing your potential LTV in ~5Y whilst also giving you a better place to live! 

For the benefit of others who may come across this thread - the part in bold is not accurate afaik.

As ACG said above, there are specialist lenders who do not allow fee-free overpayment or severely restrict it (eg: no more than £5000/year). Always check your mortgage offer for the specific features of your mortgage product.