Dunfermline Building Society Mortgage

nic283

Hi folks,

I'm new to this overpaying malarky so please bear with me. I just wondered if anyone knew offhand how Dunfermline calculate their interest? I think it is annually but I could be making this up.

If so, is it then more beneficial for me to accumulate an overpayments pot in an ISA throughout the year, and then make a lump sum payment before they calculate the annual interest, rather than make overpayments on a regular (e.g. monthly) basis?

Thanks for any help!

JonnyBravo

I don't know if Dunfermline do use annual interest but your theory is sound enough if that is their method. A simple phone call to your lender should confirm if it is yearly.

Welshlassie

10% Overpayment Facility
You can make a one off annual lump sum payment of up to 10% of the original loan amount without incurring an early repayment charge during the term of the mortgage product. Any such overpayment must be for a minimum amount of £500, over and above the monthly mortgage payment, and can only be made during the month of January. The amount you owe and the interest you will pay will be reduced immediately. If you repay more than 10% of the original loan amount early repayment charges will apply to the excess amount. If you wish to make a lump sum payment please make us aware of this at that time.

Have just found this on their site so by the look of it, you are restricted in how you can make your overpayments anyway.

I'd still call and check anyway though.

nic283

That's great, thanks Welshlassie!