End of fixed rate ... Can I pay more off?

mcdevmc

Hi there.. I have a mortgage with principality and come to end of my fixed rate in September. I'm currently able to make 10% overpayments without penalty per year. My question is if I go onto a variable rate in September can I make as many overpayments as I want? I've got £55k left in the mortgage but can pay £25k off and potentially an extra £1500 a month until it's finished. Just trying to find out if I'll still be penalised for overpaying more than 10% per year... Or if I'm better to move my mortgage. Thanks so much 

Edi81

Once you are out of a fixed rate you can usually overpay as much as you like. 

If that’s what you would like to do a tracker may be best. 

mcdevmc

Edi81 said:

Once you are out of a fixed rate you can usually overpay as much as you like. 

If that’s what you would like to do a tracker may be best. 

That's brilliant.. I did speak to principality but I didn't understand what they were saying, I thought it was still a maximum of 10% a year so if I can pay what I like on a variable rate that is amazing and I'll probably just go with that.. thank you so much 😊

simon_or

From a money-saving angle, you should still consider the option of remortgaging to a zero fee zero ERC tracker like the Nationwide one. They have free conveyancing as well so no cost involved in renortgaging.

Principality SVR is now around 7% and might go up further if they havent passed on the recent boe rate hike.

Nationwide is a base +1.14% tracker so a bit less. Has a minimum 50,000 loan size so move the whole thing over and on the first day after completion you can pay off as much as you want.

Won't save you a huge amount of money but everything counts, and it's zero risk!

dimbo61

You could also look at Offset mortgages with free valuation and free legals.
Take out new mortgage of £55,000 and then set up offset account with your £25,000 of savings, add another £1,00/1500 each month and pay down big lump sums if you want.

picky123

Edi81 said:

Once you are out of a fixed rate you can usually overpay as much as you like. 

If that’s what you would like to do a tracker may be best. 

this exactly, I was waiting until end of fix to make a big payment, but got edgy end of May and called them, arranged a new rate and they told me that once the rate is booked you can make unlimited overpayments before the new fix.