Increasing Mortgage repayments

[Phibs]

Hi there,
can someone please advise if a) I will be charged for reducing the term of my mortgage and/or b) I can increase my monthly repayments without too much hassle?!?!? I have already contacted my mortgage provider and the answer I got was vague in terms of the charges I incur!!
Thanks!

 

[demoivre]

What type of mortgage is it?

 

[dv8]

afaik you can make extra repayments if it isn't a fixed rate mortgage

 

[Dreamerb]

If you're on a fixed rate mortgage, you may incur breakage fees. Otherwise, there are almost certainly no fees for increasing repayments (it may even be illegal to impose them - I seem to recall some such reference recently) and I doubt there will be fees for reducing the term though that may vary between lenders.

 

[susie1]

we were all set to do that, then 'we read the small print' charges applicable.
instead, we're going to open a c/u acc to put the 'xtra' money in till the fixed term runs out in 5yrs, then whack a lump off the m/gage and revert back to a fixed rate (if it suits)

 

[ClubMan]

If you're on a fixed rate mortgage, you will incur breakage fees.

Some fixed rate mortgages allow you to make certain capital repayments without penalties.

we were all set to do that, then 'we read the small print' charges applicable.
instead, we're going to open a c/u acc to put the 'xtra' money in till the fixed term runs out in 5yrs, then whack a lump off the m/gage and revert back to a fixed rate (if it suits)

You should crunch the numbers. In some cases even with a fixed rate breakage penalty it may be better value long term to accelerate the repayment of capital than to wait. Use Karl Jeacle's mortgage calculator to estimate the potential savings and then factor in any breakage costs.

 

[Phibs]

Great - thanks all! Its actually a variable mortgage so I should be ok! Will get onto my mortgage guys again to get them to do the necessary!! Cheers!!