Mortgage Overpayment

Norlye

Good morning everyone,
We are in the lucky position of being able to regularly overpay on our mortgage.
We are with NatWest who allow 20% overpayment per year.
Our fixed term is coming to an end & the plan will be to fix with NatWest for 5 years.
Now, would we be able, when the fix term ends, go onto the SVR for a short period of time, overpay 20%, then go onto a fix term & keep the 20% yearly allowance or will we need to “properly re mortgage” to get a new fixed term deal NatWest.
Hoping we can avoid brokers & the seemingly endless request for just one more bit of information😀.

I hope this makes sense.

Thank you in advance.

Bigphil1474

If you know you want to re-mortgage with NatWest, why would you want to use a broker? I've never used a broker, but my mortgages and re-mortgages have always been pretty straight forward so we just found a lender with a good deal and went with it.

You'd probably have to check with NatWest, but afaik you can do that - basically let your deal end, then overpay, then re-mortgage for less. The new mortgage would restart the 12 month clock for overpayments. I suppose it depends on the numbers though - if you sort a deal out to start when your current deal ends, you might be better off than going on to SVR even for a couple of months, or not.

Newbie_John

Probably worth calling a bank as each has different rules.
Maybe there is a chance of paying 20% now, and 20% on new fixed deal? Maybe they will allow to pay extra?
But what you are suggesting is the most common case that applies to all banks, ask for new fixed deal to start a week later and use that time to overpay.

Another option you can consider is depending on your mortgage rates (some 5 year fixes are about 3.89%) and instead of overpaying - put your money into best saving account / ISA - they are around 5% still so you could potentially be better of that way - and overpay next year.