Save Thousands on your Mortgage - Lloyds banking group - HotUKDeals
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Save Thousands on your Mortgage - Lloyds banking group

Grimzz Avatar
6y, 8m agoPosted 6 years, 8 months ago
Lloyds Banking Group this week announced that its variable rate mortgage borrowers are now able to overpay 20% of their mortgage balance between now and 31st March 2011 penalty free (provided they are still within their special rate period).

This new rule applies across the Groups brands, so includes Lloyds TSB, C&G, Halifax, Bank of Scotland and BM Solutions.

Cant be bad if you can afford to overpay!!!!
Other Links From Lloyds Bank:
Grimzz Avatar
6y, 8m agoPosted 6 years, 8 months ago
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#1
Not voting either way, lots of people especially at the moment can't afford to overpay. Then being able to overpay your mortgage for just 12 months is not going to save that great a deal, even if you have a large mortgage lets say £1000 per month then with this you could pay £1200 per month, so an extra £2,400 in that year. Not a great deal off a mortgage really.

Although obviously it is better then nothing.
#2
I may be wrong but doesn't it say you can pay back 20% of your balance not 20% of your monthly payment? This would represent a huge saving if you were able to make back those sorts of extra payments, realistically as most people can't pay back 20% of the balance you are being told you can pay back as much as you can afford which sounds like a pretty decent deal to me, there are many people out there unaffected by the current climate that could knock significant amounts of interest of their mortgage here.
#3
awoodhall2003
Not voting either way, lots of people especially at the moment can't afford to overpay. Then being able to overpay your mortgage for just 12 months is not going to save that great a deal, even if you have a large mortgage lets say £1000 per month then with this you could pay £1200 per month, so an extra £2,400 in that year. Not a great deal off a mortgage really.

Although obviously it is better then nothing.


I read this as being able to pay off upto 20% of your balance, not a 20% overpayment per month
#4
Grimzz
I read this as being able to pay off upto 20% of your balance, not a 20% overpayment per month


If you did manage to pay extra this year and for example you have a 20 year term remaining this is a substantial saving on the interest payments.
#5
Fantastic if you are a banker - you can put all your state-funded bonuses towards your mortgage and save even more. Top tip.
#6
Grimzz
I read this as being able to pay off upto 20% of your balance, not a 20% overpayment per month


Actually on a second read it does appear that way which is so that is great, but still there is generally a lack of people who can't. The people who can normally go for or change to a mortgage they can overpay.
#7
awoodhall2003;8199089
Actually on a second read it does appear that way which is so that is great, but still there is generally a lack of people who can't. The people who can normally go for or change to a mortgage they can overpay.
I don't understand this. Have you made a typo or two?
#8
MightyHumungus
I don't understand this. Have you made a typo or two?


Yeah I really should proof read, but can never be bothered in the mornings when i've just got up, havent even had coffee this morning! Not really typos...it is just a mess! lol!

Let me try again!

On a second read it appears that it is 20% off the balance and not off the monthly repayments. This is great for the people who can take advantage of it, however, I am sure the people who can do this are in a minority. Furthermore, people who wish to overpay on their mortgage probably opted for a mortgage where they already could overpay, or have since transferred to one where they can.

But still a good deal to help some.
banned#9
awoodhall2003;8199089
Actually on a second read it does appear that way which is so that is great, but still there is generally a lack of people who can't. The people who can normally go for or change to a mortgage they can overpay.

tbh, if people with mortgages in steady jobs cant afford to overpay now, then they are gonna be in real trouble once interest rates rise.

overpaying a mortgage is best investment going at the moment imho

most overpayments can be easily taken back again at a later date in times of financial difficulty with no charges attached

I overpaid 50K when I was earning good money and took it out again last year as interest rate on the savings is better than the mortgage interest rate I have to pay (4.31% vs 2.5% mortgage rate!) :w00t:
#10
csiman
tbh, if people with mortgages in steady jobs cant afford to overpay now, then they are gonna be in real trouble once interest rates rise.

overpaying a mortgage is best investment going at the moment imho

most overpayments can be easily taken back again at a later date in times of financial difficulty with no charges attached

I overpaid 50K when I was earning good money and took it out again last year as interest rate on the savings is better than the mortgage interest rate I have to pay (4.31% vs 2.5% mortgage rate!) :w00t:


Never knew that! The mortgage we are getting we can't overpay without getting charged for it anyway. But is something to consider for the future, and yeah I've been looking at savings accounts but it just really is useless, you get nothing!
#11
I'm with the Nationwide and can overpay up to £500 per month penalty free. They seem to be a bit fairer than most of the banks. It is defo worth overpaying if you can esp if you're on a low rate on a tracker. Even if it's just £30 extra, your mortgage term will shorten and you can save a fair bit.
banned#12
tallpete33;8200767
I'm with the Nationwide and can overpay up to £500 per month penalty free. They seem to be a bit fairer than most of the banks. It is defo worth overpaying if you can esp if you're on a low rate on a tracker. Even if it's just £30 extra, your mortgage term will shorten and you can save a fair bit.

I'm with NW and I was overpaying about £2-3000 per month for a couple of years and never got any penalty charges at all (it did state £500 was the limit but I never got charged any excess). Got my term down from 25 years to 5 in 2 years saving about £50000 by reducing the term!

General rule of thumb is that any extra paid off in the first few years equals a saving of double the payment over the full term.

Also ensure the mortgage term is reduced rather than the monthly repayment amount.
#13
csiman
tbh, if people with mortgages in steady jobs cant afford to overpay now, then they are gonna be in real trouble once interest rates rise.


And I for one can see this happening in the not too distant future especially if there is a change of colour at the election

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