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Overpaying at end of fixed term?
ad1927
Posts: 95 Forumite
I am currently on a 1.79% deal with my mortgage provider that ends in 2026.
I am building up savings, rather than overpaying, because I have an account paying 3.9% interest. I have a sharesave account with my employer that will end at roughly the same time as my fixed term and that is expected to double the amount I've put in - making me about £25k based on current share price.
I am aware of the 10% overpayment rule, but would that rule apply if I was switching my mortgage in 2026. So, for example, in 2026 I will owe about £85,000 on my mortgage as it switches to variable - if I move to a new provider and pay £25k off the £85,000 and ask for just a loan of £60,000 - would I invoke any penalties? My feeling is I wouldn't, because I'd be out of my 5 year fixed term deal, but not sure?
I am building up savings, rather than overpaying, because I have an account paying 3.9% interest. I have a sharesave account with my employer that will end at roughly the same time as my fixed term and that is expected to double the amount I've put in - making me about £25k based on current share price.
I am aware of the 10% overpayment rule, but would that rule apply if I was switching my mortgage in 2026. So, for example, in 2026 I will owe about £85,000 on my mortgage as it switches to variable - if I move to a new provider and pay £25k off the £85,000 and ask for just a loan of £60,000 - would I invoke any penalties? My feeling is I wouldn't, because I'd be out of my 5 year fixed term deal, but not sure?
0
Comments
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Check the terms and conditions but when it reverts to the variable rate you should be able to pay whatever you want without the 10% limit.1
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most early repayments are only for the fixed term.1
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