Negotiating Ability to Pay Lump Sums against Mortgage

[DeeKie]

I'm about to take out a mortgage. I know that in 12 months - 5 years I will have a few lump sums falling due that I will probably want to use to bring down my mortgage.

Questions:
1. Should I try to negotiate the ability to do that without penalty now?
2. How amenable are the banks to doing that? Will it influence terms that I am offered?
3. Are there penalties? How big are they usually?

 

[rob oyle]

Unless you're planning to have a fixed rate mortgage, lump sum repayments are a regular element of mortgage business.

 

[Brendan Burgess]

Under the Consumer Credit Act, you can pay a lump-sum off your mortgage at any time without penalty, if it's a variable rate mortgage.

Some lenders, e.g. ptsb, give lower rates for lower Loan to Value amounts. Is there any possibility of qualifying for the lower rate band, by borrowing a bit less now?