Hello all, new to this and was just looking for some advice.

My mortgage expires next June but I am starting to get worried with all the strife in the financial and housing worlds. We purchased our house last June and put down a 10% deposit but looks like that has all but gone thanks to reducing prices. We are overpaying by £300 on top of our repayment mortgage from A&L to try and improve our position. My question is do the banks take into account overpayments when it comes to remortgaging? Or is the SVR the only way forward. I realise there are 7 months to go and lots can change in that time but we thought stretching ourselves now was better for the future, I just don't want us to be overstretched even more.

Thanx

Hi

Banks do take account of overpayments in that the figure used for your remortgage is the outstanding mortgage balance, which obviously includes any over or under payments. Overpaying now is probably a sensible option to reduce your balance as far as possible, as long as you don't exceed the level which you'd be charged early redemption penalites on - just make sure you keep some back for emergencies in a tax efficient instant access account.

Brian

Thanks for the reply. We are allowed to pay up to 10% without incurring an early repayment charge so we will fall somewaht short of that.

Thanks again,

Dan