UK Mortgage borrower requires help

olly49 · Joined: 12 Nov 2007 Posts: 1

Hi To All
I have serveral questions that I need answers to please.

I have 4 mortgages, 2 interest only the other 2 repayments.

Next year I am going to start over paying on all 4 accounts.

Is the best time to pay over payments in the middle of the month?
(Daily Interest on all Mortgages)

I am only allowed at the moment to over pay a fixed percentage untill
30-9-08 then I can pay more.

If I over pay on the Interest Accounts will this overpayment come off the Capital or Interest?
If the Interest, how will this affect my Mortgage.

Same applies to the Repayment Accounts.

Many Thanks
olly49 :?:

workplayhard · Joined: 25 Jun 2007 Posts: 5

It sounds as though you aim to stay on the lenders SVR when your benefit period ends, which i would not really recommend unless you have small mortgages on all four and the cost to switch lenders outweighs the benefit of staying where you are.

If you overpay, you would have the option of repaying the capital..... this will reduce your mortgage payments and increase your flexibility of borrowing back, underpaying etc (If applicable;~)

If you decide to repay the interest only element of your mortgage then your payments will remain the same, however you will eat-in to your capital with your monthly payments, this will ultimately reduce your monthly payments. This will apply to both types of mortgage!

As for overpaying during the middle of the month, this maybe a lender restriction so that they do not loose out on money.... I would pay (if permitted) at the start of the month.

If you really want flexibility, it will cost you money, however you can really mitigate this by using a offset account like Abbey or Clydesdale and then opt to offset interest or overpay capital!

Hope this helps - please take my thoughts as an opinion!