Mortgage question

Indy500 · 17 Jul 2008 at 20:12

HangTime said:
I guess things may have tightened up lately but last time I looked quite a few lenders will allow overpayments and indeed no ERC on non-fixed products. For example I could pay my lifetime tracker mortgage off today and suffer no penalties in addition to a standard exit fee that would apply at the end of the term anyway.

Hmm, any particular companies?

Brum Man · 17 Jul 2008 at 20:58

sr4470 said:
Hmm, any particular companies?

Virtually all companies allow unlimited overpayments once out of a fixed deal and on the rip off Standard Variable Rate.

Indy500 · 17 Jul 2008 at 21:00

Brum Man said:
Virtually all companies allow unlimited overpayments once out of a fixed deal and on the rip off Standard Variable Rate.

Thought there was a catch.

Rebelius · 17 Jul 2008 at 21:39

i just checked and my new one lets you make overpayments up to 10% of the value of the mortgage before you get any charges. AND you're allowed underpayments afterward up to the amount you made in overpayments. You can also apply for a payment holiday where you can pay a reduced amount or nothing at all for a while, but that'll make your subsequent payments larger.

HangTime · 17 Jul 2008 at 22:02

It's not just SVR deals where you can do unlimited overpayments, lifetime trackers often let you do the same (hardly surprising as they are effectively very similar to SVR, just cheaper).
The likes of Northern Rock let you overpay up to £500/month even on fixes

GarethDW · 17 Jul 2008 at 22:17

Morba said:
Odd, the place we are about to rent in, the owner was told he HAS to have a buy to let to allow him to rent it out. might just have been a specific lender thing.

Yeah, when we were renting a place in Bristol many years ago our landlord hadn't told his mortgage provider that he was letting the house out... to make matters worse, he was using the rent we were paying for something other than his mortgage payments. The bank he was with were far from happy when they realised the property wasn't his primary residence... he had to sell it pdq because they called in the loan.