Flexible Fixed rate?

crazyhazy

Ok, I'm a bit ahead of myself here, our current fixed rate is not due to end until march but having decided to go back to uni for a year next year I am wanting to look at the options now so I have a few ideas. At the moment we have a together mortgage with northern rock at 5.99%, the main advantage being we can overpay and take payment holidays etc. However when we remortgage we'd like a much better rate! What we'd like ideally is a good fixed rate on which we can overpay between march and september, then either take payments holidays for a few months while I'm at uni or even just reduce the paymjents for those months. So does anyone know of any lenders which offer fixed rates which allow overpaying and payment holidays, and we'd also need a loan to value of about 95%.

meanmachine_2

I think 90% of fixed rate deals are now flexible.

Why not enter your details into the online checkers, but make sure you tick flexiblity?

Alternatively, don't overpay, but put the money away, then when you go to uni, use your savings.

crazyhazy

meanmachine wrote:

I think 90% of fixed rate deals are now flexible.

Why not enter your details into the online checkers, but make sure you tick flexiblity?

Alternatively, don't overpay, but put the money away, then when you go to uni, use your savings.

bangs head against wall! Thanks for some reason it never occurred to me to just save the money then use it to pay the mortgage! That would be a good 2nd option then.

meanmachine_2

Well what you're after is the best possible fixed rate. An entirely flexible mortgage might not give you the best rate.

In all honesty you should really only overpay if you're going to do it permanently, thereby reducing the term of your morgage.

Overpaying one month then underpaying the next is stoopid.

Just pay the montgage each month, and salt away any savings until the time when you have less money.

Or am I missing something blindindly obvious? That, to my mind, is the most flexible option, unless you're a top rate tax payer.

Ching_Ching

This one may be worth considering:

http://forums.moneysavingexpert.com/showthread.html?t=80464

with a 4.74% fixed rate until 30/09/2005, savings/current account offset facility and the 0.60% rebate to cover fees it seems a great deal for whacking in overpayments and it seems to cater for all overpayment eventualities***
without having to watch out for the dreaded £500-per-month or 10% threshold
( 10% of what ???? , they can never tell you when you ring to find out !!)



*** All overpayment eventualities apart from winning £X million on the lottery.......
after which I probably really wouldn't give a, ahem, *fig* , what the penalties were!!

Ching_Ching