Can you overpay a lump sum between mortgage terms?

[catsaregodsindisguise]

I've tried Googling this question but I can't seem to get a simple answer to my question! Wondering if anyone here can help..

My 1.99% mortgage term is coming to an end soon the best rate I can get for 2 years is 5.99%.

The maximum I can overpay a year is 10% or there are ERCs.

My question is - what if I want to overpay a lump sum that is more than my annual allowance - is it possible to do this between terms if you are staying with the same lender? I assume the new 'deal' starts immediately when the other finishes?

You can definitely do this. Say you have a loan of £100k left at the end of the first product and you want to pay in £30k. You just take out a loan for £70k as your second product. No penalty.

Good question, Op. We plan to do the same.

Yes I did it . Paid off £30k after one deal finished and before the next one started.

So how do you do this? Do you have to call them to arrange? As taking the new deal is all online.

Yep you'll need to contact them to do anything other than the default offer they offer online most likely. It's a very common situation though (and it might bring down your LTV enough to get a slightly better deal)

Yes I’ve just done it. You have to ring up and get the Acct that you need to pay in - it was very easy. They then sent me a letter with the new amount left outstanding.

My mortgage advisor suggested doing this

Yes I contacted Nationwide, checked and just did the same.

I let the deal expire and revert to standard variable rate, paid the amount by 3 x £10k bank transfers (the most my bank would allow per day) over 3 days. Then rang my mortgage broker once funds had arrived in the mortgage account and he set the wheels in motion for the new deal.

Double check with your lender but it should definitely be possible.