Making overpayments & arrears

C

Calico

Registered User
Messages
432
I was going to tag this on to the other thread but it is a slightly different question.

Does anyone know if a mortgage provider will allow you to use overpayments as a buffer in case you go into arrears in the future? Or is the overpayment 'gone' (into repaying the capital) so to speak when you make it?
 
Calico said:
I was going to tag this on to the other thread but it is a slightly different question.

Does anyone know if a mortgage provider will allow you to use overpayments as a buffer in case you go into arrears in the future? Or is the overpayment 'gone' (into repaying the capital) so to speak when you make it?
Click to expand...

Its usually gone against the capital as otherwise you wouldn't save anything through the overpayment but it probably gives you more flexibility to restructure the repayments or take payment holidays if you do get into arrears
 
We have a tracker mortgage and we are making overpayments on our mortgage at present, our mortgage is with PTSB, and i was given to understand that the overpayment is not set against the capital until we instruct it to be offset against it. Therefore we can take a mortgage holiday if we wish. I dont know if the same applies to other lenders.
 
glynner said:
We have a tracker mortgage and we are making overpayments on our mortgage at present, our mortgage is with PTSB, and i was given to understand that the overpayment is not set against the capital until we instruct it to be offset against it. Therefore we can take a mortgage holiday if we wish. I dont know if the same applies to other lenders.
Click to expand...

A few places do it like this but there is no poaint making overpayments if it is not being offset against the capital as you are not saving on the cost of your mortgage. You would be better off starting a regular savings account and putting the money in there.
 
we overpay our mortgage and used to fund payment holiday for unpaid maternity leave, also with ptsb
 
KBC Bank also have an overpayment facility...
http://www.kbcmortgages.ie/Existing/FlexOptions/?paraID=107

When they were IIB Homeloans, any overpayments went off the outstanding capital, with the option of redrawing this back with no interest penalty if required.
Not so clear now on the KBC website, but worth a call if in any doubt.

BB

DoI - I have my mortgage with KCB
 
You must log in or register to reply here.
Back
Top