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  • FIRST POST
    • MSE Guy
    • By MSE Guy 15th Dec 09, 5:59 PM
    • 1,628Posts
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    MSE Guy
    MSE News: Christmas mortgage overpayments could save you hundreds
    • #1
    • 15th Dec 09, 5:59 PM
    MSE News: Christmas mortgage overpayments could save you hundreds 15th Dec 09 at 5:59 PM
    This is the discussion thread for the following MSE News Story:

    "Borrowers with a mortgage where the interest is calculated once a year could save hundreds of pounds by overpaying in the next two weeks, brokers insist ..."


Page 1
    • Mobeer
    • By Mobeer 15th Dec 09, 8:17 PM
    • 1,778 Posts
    • 4,438 Thanks
    Mobeer
    • #2
    • 15th Dec 09, 8:17 PM
    • #2
    • 15th Dec 09, 8:17 PM
    Terrible advice for me, particularly the quote from the mortgage sales man
    With early replayment charges, any over payment made in December attracts a 5% fee, whereas one overpayment of up to 10% is charge free during January.

    Could you make it more prominent that this is a really bad idea for lots of people?
    • Joe_Bloggs
    • By Joe_Bloggs 15th Dec 09, 8:38 PM
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    Joe_Bloggs
    • #3
    • 15th Dec 09, 8:38 PM
    • #3
    • 15th Dec 09, 8:38 PM
    @Mobeer can you mention your lender. These are most peculiar terms an conditions. J_B.
    • Mobeer
    • By Mobeer 17th Dec 09, 10:52 PM
    • 1,778 Posts
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    Mobeer
    • #4
    • 17th Dec 09, 10:52 PM
    • #4
    • 17th Dec 09, 10:52 PM
    Alliance and Leicester. I am not alone in this, as it seems each January their phone lines have lots of calls about overpayments


    I quote from their web site:

    You said:
    I am an existing Alliance & Leicester mortgage customer, can I make payments without being charged t ...

    Our answer is:
    Many of our mortgages let you pay off up to 10% of your mortgage balance each year without being charged the Early Repayment Charge that applies on the product. You can pay up to 10% as a lump sum in January of every year. This gives you the opportunity to reduce your outstanding mortgage balance and reduce your monthly payments.
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