How does it work..

andykennedy83

So I’m currently in a deal until oct 26 with Halifax and have savings which I’ve locked away to get the best savings rates as currently my mortgage rate is 1.4 or thereabouts.

I would like to know if I waited until the end of my deal and get changed to the SVR can I then make a larger overpayment without penalty then take a transfer offer? Or does it not work like this? 

Another option is to make the 10 percent overpayment before january 25 next year and then again say in February.. does this work? 

Hoenir

andykennedy83 said:

I would like to know if I waited until the end of my deal and get changed to the SVR can I then make a larger overpayment without penalty then take a transfer offer? 

If you wish to make an overpayment in excess of the annual allowance. Then yes. This is the time to do so. 

badmemory

Unless you are likely to spend it then your overpayment is better off waiting until there is no penalty as you are getting better interest than you are paying.  If it was the other way round then just pay the penalty.

amnblog

Hi Andy

Currently the only way to exceed the 10% overpayment concession with Halifax without penalty is to drop on to standard variable rate and make the overpayment then. You would be on the SVR for at least one month paying 8.74% (todays rate).