molko

Hi

Quick question....

We have a repayment tracker (.29 % above) mortgage that allows overpayment upto £5k a year. This overpayment allowance runs from the end of Jan every year for 3 years

We already make regular overpayments throughout the year anyway, but to max out the overpayment allowed i need to make a payment of around £1000 before the end of the month.

However, we are going to be moving house June/July time (or maybe earlier) and its likely we will change mortgage providers.

So is it still worth making the overpayment or not ? Cant really decide ?

Anyone got any takes/angles on this ?

Thanks

Spoon

Well the way I read it, regardless of who is going to be your mortgage lender, is that your prime intention is to lower your mortgage. Therefore with your current set-up you can pay the extra £1000 bringing your mortgage down. (Original aim).

If you change lenders then they will lend less if you pay the £1000 now. If you don't pay it your mortgage will be bigger. What if you don't get a similar mortgage and can't repay as much per year?

So in short, if you can afford to pay out now then do it surely?

boomer

S'pose it depends on when the payments are actually credited to your account. I am sure that some building societies only used to do it once a year, so you end up paying interest on a larger sum.

Dunno how financially secure you are, but if i was moving house i would keep the grand in an easy-access savings account just in case something crops up!

mb

hodgy0_2

will you be porting your mortgage when you move house or getting a new one
and presumably paying off the existing one

njkmrs

It will be a shame to change mortgages with the rate you have now ,because when you do ,I cant see you getting anywhere near that rate .If your lucky you may be able to transfer it to the new Gaff but I dont think you will to be honest .(I hope Im wrong for you ).
But if your moving ,your moving so good luck .

PaulC72

if the house he buys is more than his current mortgage will they state the remainder on another product or extend the one he has now?

njkmrs

I would be pretty sure they will not lend him anymore at the great rate he is currently on .They will possibly offer him more money at a different higher rate ,on top of his existing mortgage(running alongside it if you like ) .
Or offer him a different more expensive mortgage at an increased rate for the full amount meaning his mortgage now gets repaid and he basically gets a new mortgage for the new full amount .

Midlife......

iTrader: (2)

I paid off my old mortgage and started afresh when I moved in November 2009......couldn't stay on my old rate as they would not lend me the money at that rate.

Got a very similar rate in the end so the monthly rate was not too bad....... but the sting in the tail was the £799 arrangement fee !!

They get you in the end !!


Shaun