Overpayment / Locking In New Rate Question?

I'm one of the lucky ones with a mortgage rate of 1.35% until Oct 2026. I'm now in a position to start overpayments but I'm planning on saving instead as the saving interest rate is higher with a view to paying a lump sum off before remortgaging when my current rate comes to an end in Oct 2026. I'm aiming for the lump sum to be approx 25% of what is owed when the current fixed mortgage comes to an end. 

I've read that with most mortgage companies you can lock in a new rate in advance of the old one coming to an end normally 4-6 months in advance. Am I right to think that this would only be for the amount left owing and not including a lump sum to be paid in between the old one finishing and new one starting? ie I couldn't lock in a new rate with the proviso that I will be paying xx amount off before the new one starting? Obviously none of us have any crystal balls and this might not even be an issue if interest rates are more stable in 2026 but just trying to think ahead!

Soo if that's true do I overpay between now and then when I can only leaving 10% overpayment for the final year, so I could in theory pay the 10%, then lock in a new rate in advance of the current one ending?

Side note: I'm likely to stay with my current mortgage provider as I'm self employed and it will just be a lot easier than going through all the application processes etc.
28th April - MIP submitted and issued
23rd June - Offer Finally Accepted On A House!
23rd June - Full application submitted through broker
19th July - Mortgage offer received
23rd July - Draft contract received
26th July - Searches requested
2nd August - Survey completed



Comments

  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,920
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    edited 6 October 2023 at 12:49PM
    arrows123 said:
    Am I right to think that this would only be for the amount left owing and not including a lump sum to be paid in between the old one finishing and new one starting? ie I couldn't lock in a new rate with the proviso that I will be paying xx amount off before the new one starting? 
    You'd do it for the amount you believe would have outstanding. 

    You tighten up the figures at the time.

    No crystal balls required or permitted.
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