Sometimes, you earn more by giving away more.
Although it sounds pretty dramatic, it is true for sure.
This gets to be even truer when you are dealing with mortgage repayment. Your online mortgage broker in the UK is going to reward you financially if you add an overpayment to your existing mortgage payment.
Sounds unclear?
Well, let us tell you in a cooperative sense.
An overpayment is basically a separate payment that you can voluntarily make to your existing mortgage repayments. You can, in return, earn rewards from your mortgage lender for these additional payments.
As a matter of fact, overpayments are done to help the lender save money.
- What Online Mortgage Brokers in the UK Have to Say about Overpayments
Online mortgage deals are great and they can be quite assuring to you too.
But, hold on!
Don’t be too excited with them too!
Be it online or offline, you have probably found a certain overpayment facility in both cases.
Although overpayment is rewarding in nature,it may not be the best-suited solution for earning money rewards rapidly.
Speaking to brokers, you might be able to know something about overpayments, which has the potential to make you even organised with these deals.
What is that?
It is called theEarly Repayment Charge or anERC.
According to the best mortgage brokers online, there is a certain limit to the overpayment amount as well. Often called an Allowance, it marks a millstone on how much you can spend as an overpayment fee. As a matter of fact, paying more allowance than what’s instructed can make you pay penalties and you would not like that.
- Managing a Mortgage Overpayment: What to Keep in Mind?
Usually, the overpayment amount will fix the kind of perks you are going to get.
Here are the two most common scenarios about overpayments and what you might get making them:
- If You Pay Less than £500
In this case, you will get reduced monthly payments. Your mortgage broker will do so till your next natural recalculation point. Changes in the interest rates in your favour are highly possible too. - If You pay More than £500
This gives you even more facilities for a mortgage overpayment.You obviously get reduced monthly instalments and that is for sure. But, added to that, you can now change your loan terms; gain freedom in making the overpayment influencing your returns; direct how overpayments should be used to help you cater to your mortgage requirements and a lot.
We offer free mortgage advice in Edinburgh. If in doubt, get in touch with us to simply have a word.
- Data for making One-off Overpayment via Nationwide Accounts
Paying off your overpayment can be easy using your Nationwide account.
Nationwide is the largest building society in the world. Although it sounds so, it is also a savings provider. It is again (as it is associated with buildings or real estate property) one of the top 3 mortgage providers in the UK.
You can make and, of course, manage your repayment with the Nationwide Account if you already know the recent updates it made.
Here are they are given below:
- SMR: Standard Mortgage Rates
- BMR: Base Mortgage Rates
- FR: Fixed Rates
| Rate Type | Rate Interest | Mortgage Terms (In years) | Category |
| SMR | 4.49% (previously 4.24%) | N/A | N/A |
| BMR | 3% (previously 2.75%) | N/A | N/A |
| FR | 2.64% | 2 years | Moving Home |
| FR | 2.64% | 3 years | Moving Home |
| FR | 2.74% | 5 years | Moving Home |
| FR | 2.74% | 2; 3; 5 & 10 years | First-Time Buyers |
| FR | 2.69% | 2 & 3 years | New Business Remortgages |
| FR | 2.94% | 10 years | New Business Remortgages |
| FR | 2.54% | 2 & 3 years | Additional Borrowing |
| FR | 2.58% | 5 & 10 years | Additional Borrowing |
| FR | 2.39% | To be effective from June 1 | Green Additional Borrowing at all LTVs |
Now that you know what to do about it, you can now move along knowing what you might need for gaining the right type of overpayment management.
- What You Might Need for an Effective Mortgage Overpayment
If you are working with mortgage overpayments, then know that there are a lot of procedures to follow for ensuring your overpayment is made according to proper practices and linear measures.
After all, you must get all the benefits you need from overpayments, right?
Right!
Well, here is what you can do!
You Need a Nationwide Mortgage Calculator
People have problems keeping their assets as collateral. Why wouldn’t they feel so? A home is one of the essential assets in life. It is sometimes worrying for a lot of them to calculate the real loan terms when they are following Nationwide rates. Therefore a nationwide Calculator to calculate loan terms secures their troubles and gives them an exact valuation of the loan repayment terms.
Don’t Pay More
If your mortgage lender has some overpayment allowance, then overpaying will result in penalties or the loss of rewards. You really do not want that to happen
Find a Trusted Mortgage Broker
Mortgage brokers are the ones who can understand your mortgage repayment term in a way others won’t. It is because they are working with t professionally and their experiences are rather going to facilitate your overpayments. We work as free online mortgage brokers in the UK and you can definitely have a word with us for all your mortgage needs including overpayment.
To Conclude
Now that you know what to do, it is time for you to talk.
Always remember your income statements and the valuation of the property comes before everything. When you are sure of them, finding the proper overpayment amount and effectively managing it becomes easy.
You earn money rewards with the monthly instalments and we also feel happy to offer you mortgage advice in Edinburgh for free.
Want to talk?
Well, let us know in the comment box below.
Description: Making overpayments at the nationwide rates gives you more benefits for your mortgage. Find the rates & use a Nationwide mortgage calculator if need be.
Molly Harris, the professional loan officer and author having more than a decade of experience in her career. She has the passion of solving the problem of those who are looking for the best mortgage while visiting Shinemortgages. She works hard while searching for the best loan solutions tailored to her clients’ financial goals. From first-time home buyers to seasoned investors, Molly’s expertise and dedication cannot match anyone. One can read her research-based blogs here and get the proper guidance. Molly Harris has possessed Master’s degree in Finance field and currently pursuing doctorate research on the UK mortgage.
