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DonnieDarker

Quick Question On Renewing Your Mortgage

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Hiya,

Mrs Darker has been told that she will get a windfall in a few years from her employer.

My question is if you arrange a 3 year fixed rate mortgage when it comes to re-newing it or getting a new one are you able at that juncture to dump down an additional lump of cash with no penalties?

Thanks!

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Hiya,

Mrs Darker has been told that she will get a windfall in a few years from her employer.

My question is if you arrange a 3 year fixed rate mortgage when it comes to re-newing it or getting a new one are you able at that juncture to dump down an additional lump of cash with no penalties?

Thanks!

It will depend on the lender.

I used to use Yorkshire Building Society, very flexible. If I was you I'd present them with your particular scenario and see what they can offer. We used to dump in loads of lump sums each year - some huge amounts, some small.

Currently I've got 2 mortgages with Alliance and Leicester. With 1 I can only put in 1 lump sum every year in January which is capped at max 10% of the outstanding balance of previous year end. The other I can pay unlimited lump sums.

Lenders are very aware of the various ways people might use to clear mortgages. Some (the smaller ones generally) are keener than others to provide assistance.

Edited by Ignorant Steve

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I used to use Yorkshire Building Society, very flexible. If I was you I'd present them with your particular scenario and see what they can offer. We used to dump in loads of lump sums each year - some huge amounts, some small.

Currently I've got 2 mortgages with Alliance and Leicester. With 1 I can only put in 1 lump sum every year in January which is capped at max 10% of the outstanding balance of previous year end. The other I can pay unlimited lump sums.

Thanks Steve....TBH this news is a bit of a bolt from the blue and so upfront discussions with the mortgage lender will have to happen.

We were already intending to overpay each year but this windfall could be in the region of 10-15% of the entire mortgage. It will be very much a one-off I expect although I have share-schemes that realise at the same time so we will forecast this likelihood to whichever broker we use.

WHEN we buy... :rolleyes:

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Thanks Steve....TBH this news is a bit of a bolt from the blue and so upfront discussions with the mortgage lender will have to happen.

We were already intending to overpay each year but this windfall could be in the region of 10-15% of the entire mortgage. It will be very much a one-off I expect although I have share-schemes that realise at the same time so we will forecast this likelihood to whichever broker we use.

WHEN we buy... :rolleyes:

There are mortgage calculation tools available on the web that enable you to build in lump sum payments and to see the difference. Huge if you make them early in the life of the mortgage. Well worth investigating.

I'd also go for a 15 year mortgage if you can. Again significantly cheaper in the long run.

We're aiming to clear most, if not all, of our 15yr IO mortgage within 8 years. Not that hard if you're sensible. We have, of course, also assumed that we won't be able to and have a plan B in place.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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