Overpayment now or a bulk payment at end of mortgage deal
Discussion
Bit of advice needed if anyone knows the answer or has a opinion. Our first mortgage which was a 4 year deal with nationwide ends next October and i unsure of best way to pay a lump off or if it makes any difference at all which way i do it.
Background is that im commission based mostly with a small (10K)basic wage so i struggled to find a lender who would not run away once i mentioned this. My girlfriend is a teacher who is covering maternity cover currently but hopes to find something permanent again soon. We worry a bit about the pending remortgage because of the new rules etc. I earn £35-40k and she is about £28k currently. We have no other debt at all if thats relevant.
Our house originally cost £177000 but i put £65k depsoit. This came out at £507 plus a £100 overpayment every month. balance at the end of 4 years should be £92-93k i guess.
Do i wait until we remortgage next year and then say i want to pay a lump off (circa 25k -30k) the remaining balance or do i max out my overpayments (10% of 112k per year ) so i could pay 10k before october 2016 and another £10k next year plus the usual 12 x £100.
End result surely is the same balance to remortgage give or take a bit of interest ? Do they look more favourably on either method for renewal time?
Our aim is to have as least hassle come remortgage time so im open to suggestions or ideas as its come around so fast and i meant to overpay more but ended up sticking it in savings instead.
thanks
Background is that im commission based mostly with a small (10K)basic wage so i struggled to find a lender who would not run away once i mentioned this. My girlfriend is a teacher who is covering maternity cover currently but hopes to find something permanent again soon. We worry a bit about the pending remortgage because of the new rules etc. I earn £35-40k and she is about £28k currently. We have no other debt at all if thats relevant.
Our house originally cost £177000 but i put £65k depsoit. This came out at £507 plus a £100 overpayment every month. balance at the end of 4 years should be £92-93k i guess.
Do i wait until we remortgage next year and then say i want to pay a lump off (circa 25k -30k) the remaining balance or do i max out my overpayments (10% of 112k per year ) so i could pay 10k before october 2016 and another £10k next year plus the usual 12 x £100.
End result surely is the same balance to remortgage give or take a bit of interest ? Do they look more favourably on either method for renewal time?
Our aim is to have as least hassle come remortgage time so im open to suggestions or ideas as its come around so fast and i meant to overpay more but ended up sticking it in savings instead.
thanks
thanks for info guys.
According to our original mortgage documents the payment goes up nearly £100 a month if we let it run onto the normal rate. Plan is to fix again for a few years.
Going to pop into a store or call them so i know exactly how much i can pay without being charged and pay a lump now and another after October.
According to our original mortgage documents the payment goes up nearly £100 a month if we let it run onto the normal rate. Plan is to fix again for a few years.
Going to pop into a store or call them so i know exactly how much i can pay without being charged and pay a lump now and another after October.
Its now a few months further on and remortgage time is getting closer. I can do it from July onwards according to Nationwide.
I didn't end up paying another £10k off just yet but money is there waiting to be used when i decide to.
So my question is.... if i just simply renew online with Nationwide (as a execution only i believe the term used is) on to a different product will I have to go through the pain of a full application or will it be a 5 minute job? All the rules seem to be constantly changing so thought its best to ask.
I didn't end up paying another £10k off just yet but money is there waiting to be used when i decide to.
So my question is.... if i just simply renew online with Nationwide (as a execution only i believe the term used is) on to a different product will I have to go through the pain of a full application or will it be a 5 minute job? All the rules seem to be constantly changing so thought its best to ask.
vinnie83 said:
d8mok said:
will I have to go through the pain of a full application or will it be a 5 minute job? All the rules seem to be constantly changing so thought its best to ask.
If you're only switching rates and keeping everything else the same (term and borrowing amount) then you don't need to re-apply. If you change the terms of the loan, a new application will be required.Maybe i'd be better keeping the same term and overpaying again.
In the end i just did a execution only application online with current provider (nationwide).
Couldnt reduce term, or amount without a proper application so i will just overpay again.
Got a 2 year tracker at 1.24% above base with no fees at a 36%LTV on their calculations . which seems not too bad. Yes there are slightly better deals but i couldn't be bothered with the hassle. More importantly i can overpay as much as i like and also no ERC so i can keep chipping away at the debt.
Couldnt reduce term, or amount without a proper application so i will just overpay again.
Got a 2 year tracker at 1.24% above base with no fees at a 36%LTV on their calculations . which seems not too bad. Yes there are slightly better deals but i couldn't be bothered with the hassle. More importantly i can overpay as much as i like and also no ERC so i can keep chipping away at the debt.
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