Mortgage Overpayment

joeglas

Hi.
We currently have a mortgage outstanding of £34k approx.
Our fixed term is about to end next month.
With our current provider we can overpay up to 10% of the outstanding amount without incurring charges. We are looking for a provider who would allow is to overpay 20%  or so without charges.
Ive serached online but cant find anyone, does anyone know of any

Thanks

penners324

Accord do mortgages that allow 50% overpayment. 

Hoenir

You could allow the fixed term to end. Then shorten your remaining mortgage term. Before refixing onto a new product. 

joeglas

Thanks, accoed mortgages need to go through a broker

Newbie_John

First Direct unlimited.

With £34k mortgage don't really see a big deal.

If you expect to "overpay enough" in 2,3,5 years - just fix to best offering of your bank, save the money (do not overpay) in 4%+ saving account and when your next fix ends - just pay off the mortgage in full - it will financially come down to more or less the same - the only difference will be mortgage rate vs savings rate - theoretically you can even come out better that way.

kimwp

Once your fix comes to an end, you can overpay as much as you want.

If you still want to fix for the remainder and you know you can afford to overpay by x%, why don't you get a fix over a shorter period of time with higher payments?

Season_of_Mist

joeglas said:

Hi.
We currently have a mortgage outstanding of £34k approx.
Our fixed term is about to end next month.
With our current provider we can overpay up to 10% of the outstanding amount without incurring charges. We are looking for a provider who would allow is to overpay 20%  or so without charges.
Ive serached online but cant find anyone, does anyone know of any

Thanks

NatWest allow 20% overpayments without penalty. They increased it to this figure from 10% max in 2023, but did so without any fanfare or big announcement. I’m on a 5-year fix with them and it is very convenient. Of course, if you’re looking to move to them you would need to check this applies to new customers. 

BikingBud

joeglas said:

Hi.
We currently have a mortgage outstanding of £34k approx.
Our fixed term is about to end next month.
With our current provider we can overpay up to 10% of the outstanding amount without incurring charges. We are looking for a provider who would allow is to overpay 20%  or so without charges.
Ive serached online but cant find anyone, does anyone know of any

Thanks

What do you intend to achieve as the desired outcome might influence the choice.

You didn't mention staying on a fixed rate, SVR will allow overpayment without penalty but does this invoke higher rates of interest and potentially higher cost? Or not?

Greater details might enable better advice.

Yorkie1

It used to be the case that tracker mortgages allowed higher penalty-free overpayments; might be worth checking out what the possibilities are in that regard with your lender?

Psbcuddles

With our 2 year fix with Nationwide we were able to make unlimited penalty free overpayments in the last 30 days of the deal, so its woth asking if those terms apply to your current mortgage.

Like others have said if you want to be able to make overpayments beyond the 10% most lenders allow, a Tracker Mortgage is a good option to consider.  Check with the provider, but with our Nationwide 2 Year Tracker we paid a slightly higher rate of interest than we would have on a 2 year fix, but we were able to make unlimited penalty free overpayments. 

We got the Tracker Mortgage in January 2024, and by October the Mortgage was paid off in full!  We would not have been able to do that penalty free on a 2 year fix!