Any finance/mortgage gen?

[Ben]

Basically after some advice and can't find out the answer directly on google etc...

I am looking to plough as much money into my morgagtes as possible to get them paid off, both of the current deals have expired so I'm free to switch, but with how my work is I don't want to over commit to something I can afford now if my circumstances change so my questions on a repayment morgatge can I overpay, say took a deal paying £5-600 a month but pay £2-3k off it instead?

rough online calculator says for a 5 year deal it's £1600 a month on one and £2300 on the other obviously I couldn't afford both like that so hence why I just want to be able to pay as much as I can afford?

[mowgli]

check out your mortgages.. there are a lot of them that have a certain day each year when you can actually pay off a chunk of the capital, which will pay the mortgage of quicker... i'm not really massively clued up on this but, basically, if you pay off a grand to the capital, its worth about the same as paying 4 grand off the mortgage.

so the trick is to save a chunk & then on the changeover day pay it against the capital. thus your monthly payments will go down, then the next year, do the same & it goes down even more etc until you have paid it off

[MK999]

Maybe look into a One Account, is what the parents have, anything in your current/savings/mortgage account (sure you can work that out from the name) counts against your mortgage, so basically if you have a 100k mortgage and 20k in savings, it counts it and charges interest like, an 80k mortgage. Only downside is you only ever get ATM receipts that say you have -£80k to your name

[bazil]

My last 2 deals have allowed me to pay upto 10% of the total loan in a 1 off payment in a 12 month period,

ATM I'm on an interest only paying only £202 per month and ofcourse that will never pay of the capital so I just make a large payment once a year to bring down the capital, then the interest is recalculated for the following 12 months and I pay less.

[Jim]

You say your current deals have expired so I assume you have gone on to your bank/building society standard variable rate for the time being? If so, you may still be restricted to the amount of overpayments you can make each year.

[Ben]

Yeah that's right Jim but I want to take out new deals with them or a n other. Was tempted to take out a 5 yr deal and pay one off entirely but that's a massive commitment!

[Jim]

I don't know what current deals are around, but I'd be wary of going on to a fixed deal for 5 years given that the interest rates are so low. You may find it more financially beneficial to stay with the standard variable rate and make as much in overpayments as your provider will allow. Might be best to speak to a professional? I can highly recommend the advisor that I've been dealing with. PM me if you would like his details.

[Pistol Pete]

I don't know what current deals are around, but I'd be wary of going on to a fixed deal for 5 years given that the interest rates are so low. You may find it more financially beneficial to stay with the standard variable rate and make as much in overpayments as your provider will allow. Might be best to speak to a professional? I can highly recommend the advisor that I've been dealing with. PM me if you would like his details.

But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

[Stuart]

we fixed just before the rates dropped, BUT looking around at options now it seems the rates have come back up again to a similar level so we dont feel so vexed .

Our fixed deal says we can overpay by 10% of the balance in a 12month rolling period, either in one off chunks or monthly but if its monthly the need 2 months notice on changing the payment figure

I did work out once that if you paid daily you'd save a feck load of interest but they wont let you do that

[The Simps]

Check out first direct for mortgages Ben. Very competitive rates, low feels and most of the deals do not have a cap on overpayments. If your loan to value is good then you can get some good tracker deals too that have a cap - http://mortgages.firstdirect.com/specialoffers. I think they insist you open a current account with them to pay the mortgage but all you have to do is put a standing order into it from your normal account to cover it.

Who are you currently with and what SVR are you paying? If you're on the SVR there shouldnt be any problem overpaying whatever you want.