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  • FIRST POST
    • JennyP
    • By JennyP 12th Apr 18, 5:01 PM
    • 944Posts
    • 722Thanks
    JennyP
    Question about overpayments....
    • #1
    • 12th Apr 18, 5:01 PM
    Question about overpayments.... 12th Apr 18 at 5:01 PM
    I am keeping a diary but wanted to ask a specific question.

    I have two buy to let mortgages that I am trying to pay off. Both are currently on a fixed rate so there is a maximum overpayment amount that can be made each year. They are with different companies.

    I paid the maximum amount off on each last week from my savings to give myself a headstart. Each mortgage company then sent me a letter saying that my monthly payments were going to be reduced.

    I rang the first company and said please can you keep it the same as it was as I am trying to pay it off earlier. They said fine.

    I rang the second one and they said if I keep the mortgage repayments the same, then that would count as extra overpayments so I cannot do it without penalty.

    Does that sound right? I was surprised. I thought I would be allowed to keep the payment amount the same and make the maximum overpayment.
Page 1
    • greent
    • By greent 15th Apr 18, 11:33 AM
    • 7,245 Posts
    • 73,593 Thanks
    greent
    • #2
    • 15th Apr 18, 11:33 AM
    • #2
    • 15th Apr 18, 11:33 AM
    It's probably in the super small print in the t&cs - but technically the 2nd company are correct in saying that the extra amount is an OP - and so would therefore be liable for penalties.

    How about setting the extra for mtge 2 aside into a savings account each month? The mtge won't be reducing by this amount, but you're creating a sort-of offset for you, so you can net them off when figuring out what you owe? When the fix ends you can then pay this saved lump off the mtge.
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £3290.25/£4000
    Net sales 2018 £617.82/£1000 PAYDOX18 (#15) Done £18918.90
    • Old Git
    • By Old Git 15th Apr 18, 2:54 PM
    • 4,297 Posts
    • 3,742 Thanks
    Old Git
    • #3
    • 15th Apr 18, 2:54 PM
    • #3
    • 15th Apr 18, 2:54 PM
    another option might be to overpay mortgage 1 by more than you had planned .
    "Do not regret growing older, it's a privilege denied to many"
    • greent
    • By greent 15th Apr 18, 3:42 PM
    • 7,245 Posts
    • 73,593 Thanks
    greent
    • #4
    • 15th Apr 18, 3:42 PM
    • #4
    • 15th Apr 18, 3:42 PM
    another option might be to overpay mortgage 1 by more than you had planned .
    Originally posted by Old Git
    Although that would depend whether provider 1 would allow penalty-free increased payments after the 10% OP, as opposed to just keeping payments the same as the previous amount
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £3290.25/£4000
    Net sales 2018 £617.82/£1000 PAYDOX18 (#15) Done £18918.90
    • JennyP
    • By JennyP 15th Apr 18, 5:27 PM
    • 944 Posts
    • 722 Thanks
    JennyP
    • #5
    • 15th Apr 18, 5:27 PM
    • #5
    • 15th Apr 18, 5:27 PM
    They won't.
    • greent
    • By greent 16th Apr 18, 12:39 PM
    • 7,245 Posts
    • 73,593 Thanks
    greent
    • #6
    • 16th Apr 18, 12:39 PM
    • #6
    • 16th Apr 18, 12:39 PM
    They won't.
    Originally posted by JennyP
    In which case the personal offset with the 'extra' from Mtge 2 saved into a separate account until the fix ends seems a reasonable compromise, I'd guess
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £3290.25/£4000
    Net sales 2018 £617.82/£1000 PAYDOX18 (#15) Done £18918.90
    • JennyP
    • By JennyP 16th Apr 18, 8:21 PM
    • 944 Posts
    • 722 Thanks
    JennyP
    • #7
    • 16th Apr 18, 8:21 PM
    • #7
    • 16th Apr 18, 8:21 PM
    That's what I'm doing!
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