Barclays Fixed 7 year remortgage ..hoping to pay off extra money, best way to do it please, thanks

brenda10

I'm wondering how best to reduce the years on the Fixed term Barclays mortgage, overpay in small amounts or 10% overpayment in 1 payment, thanks

Hoenir

The sooner you overpay the greater the benefit in the longer term. 

brenda10

I want the interest to be reduced plus the term, not the monthly amount if I make larger overpayments which happened with my last provider, it was frustrating as 5 year term remained the same and they constantly reduced my monthly payments, no benefit to me.

Brie

You need to make this clear to them when you set up the overpayment.  Their system will likely go ahead and do whatever their system is set up to do (possibly reduce the monthly payments) but then you will need to go back and remind them what you said you wanted happening at the start.  If they simply refuse then I would suggest paying the excess amount each month or perhaps every 3 months so that you keep knocking the interest payable down.

Newbie_John

How long is your mortgage, what's the interest rate and what's the fixed period you currently on - sorry it's not really clear.

Owen1991

We're just about to take out a Barclays mortgage, it seems as though you can overpay up to 3x your monthly direct debit each month to reduce the term.

However if you make one off overpayments higher than this it reduces the amount you pay each month rather than the term.

We'll be making monthly overpayments as we'd rather reduce the term than the monthly payment.

400ixl

Brie said:

You need to make this clear to them when you set up the overpayment.  

You need to make it clear before you take the mortgage out as it is a contractual term. It is either a fixed payment or a fixed term. Some cover both, some don't and can't be set to reduce the term.