Confused about overpaying mortgage

isadreamalie

Great Post and replies. Exactly what I was trying to work out!

daern

In a similar position, albeit with a different bank. We were advised (by them) to be very careful not to overpay too much such that you risk running out of balance before the end of the initial fixed term. They would only allow us to reduce payments to a certain level, so if we paid off too much, it could easily result in us not having enough money left in and unavoidably paying it off early, at which point we'd be liable for 100% of the early redemption penalties, even if it was only by £50 and one month.

I've worked things out on ours so we'll actually clear the balance 2 months after the fixed period to be absolutely, 100% sure this doesn't happen, although we intend to have enough stashed away such that the moment we get the green light that we've moved onto the SVR rate, we'll clear it down immediately!