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  • FIRST POST
    • mattwaylen
    • By mattwaylen 5th Jul 18, 9:26 AM
    • 2Posts
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    mattwaylen
    Mortgage overpayments - negative impact on mortgage application
    • #1
    • 5th Jul 18, 9:26 AM
    Mortgage overpayments - negative impact on mortgage application 5th Jul 18 at 9:26 AM
    Hello All,

    I have a question for the mortgage experts/Mortgage Advisers on here.
    Can mortgage overpayments be seen as a negative when applying for a new mortgage?

    I have been told that it could be seen as a financial commitment when applying.

    My thinking was that they shouldn't as it is technically spare money and can demonstrate that any rise in interest rate is easily affordable.
    However, my knowledge of mortgages is limited and I could be completely wrong!

    My current monthly mortgage and overpayment as follows:
    Mortgage 430
    Overpayment 470

    Any advice would be greatly appreciated.

    Thanks
    Matt
Page 1
    • ACG
    • By ACG 5th Jul 18, 9:40 AM
    • 17,152 Posts
    • 9,046 Thanks
    ACG
    • #2
    • 5th Jul 18, 9:40 AM
    • #2
    • 5th Jul 18, 9:40 AM
    I cant think of any way it would be seen as a negative. Your monthly commitment amount will show on your mortgage statement and credit report, so it is easy enough to determine that you are overpaying.

    But even if it were a commitment - would it not be going any way in place of the new mortgage? (ie the original mortgage paid off with the new one).
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mattwaylen
    • By mattwaylen 5th Jul 18, 10:14 AM
    • 2 Posts
    • 0 Thanks
    mattwaylen
    • #3
    • 5th Jul 18, 10:14 AM
    • #3
    • 5th Jul 18, 10:14 AM
    Thanks for your reply.

    As I mentioned in my original post, I am a novice when it comes to mortgages - only been through the process once as a first time buyer 6 years ago!

    We are planning on moving to a bigger property in the near future and I was going to detox my finances before applying for a new mortgage.
    One of the things I was going to stop was my regular overpayments and leave it as surplus in my bank account, but if this is not necessary I will leave it as it is.
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