Mortgage Rate Rises

firstborn said:
Surely that's just money under the mattress territory for GD types. Just pay it off and wait a little longer for a new watch/phone/belt :p
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Unfortunately redundancy is coming in a few months time, so will probably pay the remainder off with the payout. It's a pretty generous one, so will have plenty left for Gucci belts and corner sofas :p

Just not looking forward to job hunting....
 
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Syla5 said:
Anyone had any experience of requesting overpayments balances back from the mortgage lender? I have about £25k in my overpayments bucket and a mortgage rate that is 2.39% so i would be earning money just by having that overpayments bucket in a fixed term bond or high interest savings account even.
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Is that something they explicitly offer? If it's anything like Halifax I believe the only way of doing this is to essentially reference a payment holiday/break to the overpayment value. I'd be interested to know which lender this is if they offer simple extraction of all the overpayment funds.
 
Zefan said:
Is that something they explicitly offer? If it's anything like Halifax I believe the only way of doing this is to essentially reference a payment holiday/break to the overpayment value. I'd be interested to know which lender this is if they offer simple extraction of all the overpayment funds.
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yub, just this... from my experience you can re-negotiate the rest of your terms payments so the overpayments are cancelled out.
 
IvanDobskey said:
Unfortunately redundancy is coming in a few months time, so will probably pay the remainder off with the payout. It's a pretty generous one, so will have plenty left for Gucci belts and corner sofas :p

Just not looking forward to job hunting....
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would it not be a better idea especially because of redundancies? If you just had it sitting in the bank then they can use that amount to means test you when it comes to claiming benefits?

This is why I stack into my pension and overpayments, so when/if I do decide to take a year or two out.. the dole office can't say to me "Mr Slinxy... you have x thousands in the bank, x thousands in shares so we are giving nothing! you can afford to keep paying your own mortagage.."
 
Syla5 said:
Anyone had any experience of requesting overpayments balances back from the mortgage lender? I have about £25k in my overpayments bucket and a mortgage rate that is 2.39% so i would be earning money just by having that overpayments bucket in a fixed term bond or high interest savings account even.
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I contacted my lender (Nationwide) and agreed an underpayment instead of returning overpayment balance to me. I reduced my payments from £470 PCM to £100 PCM so I was basically doing interest-only.

It does seem like I can return the balance but this will probably vary lender to lender, best to ask them. I had an overpayment balance but it wasn't as high as yours.

Borrow back your mortgage overpayments | Nationwide

Find out if you can borrow back your mortgage overpayments. Borrowing back is only a feature on mortgages taken out before 4 March 2010.
www.nationwide.co.uk www.nationwide.co.uk

This isn't quite as good as getting it back in a lump sum but I can put the balance I don't pay into other things, which is what I'm doing. In approximately 2 years time I'll need a new deal and then I'll probably have to return the balance I haven't been paying in order to keep the mortgage ticking down.
 
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HungryHippos said:
I contacted my lender (Nationwide) and agreed an underpayment instead of returning overpayment balance to me. I reduced my payments from £470 PCM to £100 PCM so I was basically doing interest-only.

It does seem like I can return the balance but this will probably vary lender to lender, best to ask them. I had an overpayment balance but it wasn't as high as yours.

Borrow back your mortgage overpayments | Nationwide

Find out if you can borrow back your mortgage overpayments. Borrowing back is only a feature on mortgages taken out before 4 March 2010.
www.nationwide.co.uk www.nationwide.co.uk

This isn't quite as good as getting it back in a lump sum but I can put the balance I don't pay into other things, which is what I'm doing. In approximately 2 years time I'll need a new deal and then I'll probably have to return the balance I haven't been paying in order to keep the mortgage ticking down.
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I am with nationwide i would have to reach out to them to understand what my options are I guess. Realistically if i could borrow back the full OP balance then I could earn about 8k more in interest over the next 8 years then it would cost me to borrow the money back.

Zefan said:
Is that something they explicitly offer? If it's anything like Halifax I believe the only way of doing this is to essentially reference a payment holiday/break to the overpayment value. I'd be interested to know which lender this is if they offer simple extraction of all the overpayment funds.
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Payment holidays are often seen as a negative thing especially from a credit file perspective is my understanding and that's not something i want to approach. I don't need any sort of concession i just want to make the most of my money.
 
If you're on a 10 year fix then yes absolutely get the money out if you can. You can certainly make more on it at the moment, even if you just put it back in later on. Just note the overpayment annual limits, and the fact that ISA cap is still £20K and avoiding paying tax on interest earnt etc.

Using overpayment balance as payments via underpayment isn't seen the same as payment holidays here, it's your own credit you're using.

Think you can either ask for a lump sum back, or do what I did and simply cut payments until it's used up, think you can go to £0 on payments via this but I wanted to put in a token figure to freeze the balance roughly where it was.
 
Yeah already capping my ISA limits but not the wifes, no point overpaying due to interest variance between my rate and savers rates (2.39% fixed for another 7.5 years) and so now exploring how to make the most out of the overpayments we previously made!
 
Syla5 said:
Payment holidays are often seen as a negative thing especially from a credit file perspective is my understanding and that's not something i want to approach. I don't need any sort of concession i just want to make the most of my money.
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It doesn't work like this from what I gather, payments are made however they're just taken from your overpayment balance.
 
Ooh possible 0.25% cut on the cards coming on Thursday.

I'd say with the price of oil dropping we should see this happen - you might even find a sub 4% fee free 5 year fix around the corner .

I have a BTL currently on tracker I can fix it fee free at 4.71 for 5 years . I'm gonna follow the dice for 6 months though as I'm sure we will see at least 2 drops before Christmas .
 
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Bald-Eagle22 said:
Ooh possible 0.25% cut on the cards coming on Thursday.

I'd say with the price of oil dropping we should see this happen - you might even find a sub 4% fee free 5 year fix around the corner .

I have a BTL currently on tracker I can fix it fee free at 4.71 for 5 years . I'm gonna follow the dice for 6 months though as I'm sure we will see at least 2 drops before Christmas .
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I hope you're right as I'm on a tracker too but I reckon the BOE will bottle it again due to wage rises.
 
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