Barclays - Is this how overpayments work? Thinking of switching to them from HSBC tracker.

IAMIAM

Mortgage 186k
Mortgage Payments 1k
If I were to pick their 5 year fix for example, 3.95%

Hypothetical Figures

Monthly Mortgage Payment 1k
Monthly Mortgage Overpayment £2999 (less than 3 months payments)
12 months payment = circa 48k, 36k overpayment balance.

I can then ring and say I do not want to pay monthly anymore for 3 years, please use the overpayment balance of 36k available???! Is this allowed?

Also, what happens at remortgage time, rate switch time, selling time etc based on having a large overpayment balance....

la531983

For the last bit, they will use the overpayments to lower the payments at "renewal" time, they wont adjust the term unless you specifically ask (and this may open you up to a full affordability check). This just happened to me with them, which is fine.

As for using overpayments to be able not to pay for a period...

"You always need to make your contractual monthly payment (CMP) unless we’ve agreed otherwise. This is in your mortgage offer as your ‘regular monthly payment’, or in your most recent payment notification if your CMP has changed since you got your offer."

born_again

IAMIAM said:

Mortgage 186k
Mortgage Payments 1k
If I were to pick their 5 year fix for example, 3.95%

Hypothetical Figures

Monthly Mortgage Payment 1k
Monthly Mortgage Overpayment £2999 (less than 3 months payments)
12 months payment = circa 48k, 36k overpayment balance.

I can then ring and say I do not want to pay monthly anymore for 3 years, please use the overpayment balance of 36k available???! Is this allowed?

Also, what happens at remortgage time, rate switch time, selling time etc based on having a large overpayment balance....

I would very much doubt that they would go for that. If that is your plan, then put the overpayment in a savings account to pay later.