Mortgage With Northern Rock Making Overpayments

[charikaar]

Hi,

My buy to let mortgage is going to start with northern rock very soon at the rate 5.49% fixed for two years. I know they will allow 10% overpayments each year for the fixed period. Does anyone if I can make the total 10% as one payment in order to reduce the interest paid every month.

Loan is £117k including £2k product fee.

Monthly interest only £532

how much will be my monthly interest if i make 10% i.e 11.7k to them as one off payment?

Thanks for your help.

[Si1]

how much will be my monthly interest if i make 10% i.e 11.7k to them as one off payment?

err...

[General Congreve]

Hi,

My buy to let mortgage is going to start with northern rock very soon at the rate 5.49% fixed for two years. I know they will allow 10% overpayments each year for the fixed period. Does anyone if I can make the total 10% as one payment in order to reduce the interest paid every month.

Loan is £117k including £2k product fee.

Monthly interest only £532

how much will be my monthly interest if i make 10% i.e 11.7k to them as one off payment?

Thanks for your help.

Ever taken a wrong turn and ended up in the rough side of town?

[Wurzel Of Highbridge]

Are you sure that BTL is right for you?

Not being funny you should be able to do a little math and should seek this information from Northern Rock directly as these terms and conditions often vary.

What is the yield you expect to make on your purchase? Will your BTL interest rate go up if you find yourself with less equity in 2 years time? Have you budgeted for repairs? etc...

[Sir Sidney Ruff-Diamond]

Hi,

My buy to let mortgage is going to start with northern rock very soon at the rate 5.49% fixed for two years. I know they will allow 10% overpayments each year for the fixed period. Does anyone if I can make the total 10% as one payment in order to reduce the interest paid every month.

Loan is £117k including £2k product fee.

Monthly interest only £532

how much will be my monthly interest if i make 10% i.e 11.7k to them as one off payment?

Thanks for your help.

The monthly interest would probably actually go up because of early redemption depreciation surcharges.

[assetrichcashpoor]

On Northern Rock residential repayment mortgages when it comes to overpayments I believe the default option is to keep the term of the mortgage constant and the monthly payments reduce. You should get the option when you overpay to reduce the term of the loan with your monthly payments staying constant, thereby paying off the loan sooner. I think most people who overpay their mortgage do it so that they can pay it off sooner.

In your example if you paid off 10% of the capital as an overpayment then your monthly interest would go down by ~£50 now, but do your own sums to see how much it would change things over the lifetime of the mortgage.

[Djini]

Hi,

My buy to let mortgage is going to start with northern rock very soon at the rate 5.49% fixed for two years. I know they will allow 10% overpayments each year for the fixed period. Does anyone if I can make the total 10% as one payment in order to reduce the interest paid every month.

Loan is £117k including £2k product fee.

Monthly interest only £532

how much will be my monthly interest if i make 10% i.e 11.7k to them as one off payment?

Thanks for your help.

You have to pay £2k to set that up and it's only for 2 years? That's £80 a month. Are you insane?