# can I overpay mortgage and keep tracker?



## tealover (21 Sep 2010)

Currently myself and OH have a 2 yr fixed rate mortgage at 6% which will be reverting to a tracker ecb+1.15%  next month. Happy days. This will decrease our repayments by about 350-450 a month depending on TRS.  Our mortgage is over 35 years which puts my OH at 70 years at end of mortgage. We are now in the fortunate position of being able to overpay the mortgage by 100 pm .
Will this affect the terms and conditions of a tracker? 
How do we do this? Pay the money into the account or save it separately? Can you choose to pay it  off the capital or does it have to be off the interest? How can I calculate how many years this will take off the life of the mortgage?
Thanks in advance for any advice.


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## niceoneted (21 Sep 2010)

Inform the bank you wish to overpay by 100 per month they will calculate the rest as in how it will affect your term.


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## shortarms (21 Sep 2010)

I am in a similar position myself and was wondering if overpaying will alter the existing contract, ie, give the bank a get out option. 
  Also, will there be a charge for overpaying?


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## twofor1 (21 Sep 2010)

A tracker is a variable rate mortgage that can be over paid without charge, doing so will not alter your agreement.

 If you are on a good tracker it might be more beneficial to save rather than overpay. 

Different banks have different methods of applying over payments, you might get a better answer if you say who the lender is.

Use the mortgage calculator to see how much the term is reduced by and the interest savings.

http://www.drcalculator.com/mortgage/


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