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stokiescum

Daft question

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I’ve just been pissing about with there morgage calculator and it’s showing bla bla bla penalty’s for overpaying on your morgage however that does not concern me what does it’s not showing that you can’t overpay the normal

10% a year without penalty either I’m daft or Lloyd’s have indeed withdrawn this capability and say on a 5 year morgage replaced it with a 5% penalty’ dropping by 1% a year 

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5 hours ago, stokiescum said:

I’ve just been pissing about with there morgage calculator and it’s showing bla bla bla penalty’s for overpaying on your morgage however that does not concern me what does it’s not showing that you can’t overpay the normal

10% a year without penalty either I’m daft or Lloyd’s have indeed withdrawn this capability and say on a 5 year morgage replaced it with a 5% penalty’ dropping by 1% a year 

Its depends on the mortgage. Go thru the TsNCs

Ive a 5 year fix @ 1.6%ish with HSBC. I can overpay as much as I like but theres got to be some money left owing in the account when the 5 year fix ends.

I

 

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On the whole, the 10% of the balance every year seems pretty standard on a fixed mortgage now Stokie. The only bank (I didn't check them all when applying) I saw offering unlimited overpayments is First Direct, whereas HSBC don't.

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2 hours ago, spygirl said:

Its depends on the mortgage. Go thru the TsNCs

Ive a 5 year fix @ 1.6%ish with HSBC. I can overpay as much as I like but theres got to be some money left owing in the account when the 5 year fix ends.

I

 

Could it be just a fiver?

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I was surprised that the banks were allowing it at all tbh as it's not in their interest.

They have to allocate a proportion of their capital to the loan following the reintroduction of the capital allocation rules that were ripped up by Gordon Brown among others and that went well.

If you start with a £100k mortgage and pay off £50k at the start of the year the bank now half the capital originally allocated no longer providing a return for the year.

Similarly I had a business overdraft cut because the bank thought that there would be insufficient use of it during the next year.

If they allocate a loan they want it fully taken up.

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9 minutes ago, sarahbell said:

Could it be just a fiver?

Yes.

I was told as long as theres at least £1 let, Im OK.

I think this was HSBC - rather than FD. I bank with FD but I think the mortgage is HSBC - not that it matters hugely.

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3 minutes ago, Frank Hovis said:

I was surprised that the banks were allowing it at all tbh as it's not in their interest.

They have to allocate a proportion of their capital to the loan following the reintroduction of the capital allocation rules that were ripped up by Gordon Brown among others and that went well.

If you start with a £100k mortgage and pay off £50k at the start of the year the bank now half the capital originally allocated no longer providing a return for the year.

Similarly I had a business overdraft cut because the bank thought that there would be insufficient use of it during the next year.

If they allocate a loan they want it fully taken up.

They need to set aside capital.

However .... if theyve a cheap source of savings and a nifty treasury team, Im sure they can manage.

In my case the FD/HSBC was dirt cheap - 1.6%, under 2% - as HSBC were funding it from Chinese savings.

HSBC did not not touch TFS cash.

A quick look a te banks who did gives you a clear view of which banks are currently or oon to be up shit creek.

Metrobank for one. Nationwide for another.

 

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1 minute ago, spygirl said:

They need to set aside capital.

However .... if theyve a cheap source of savings and a nifty treasury team, Im sure they can manage.

In my case the FD/HSBC was dirt cheap - 1.6%, under 2% - as HSBC were funding it from Chinese savings.

HSBC did not not touch TFS cash.

A quick look a te banks who did gives you a clear view of which banks are currently or oon to be up shit creek.

Metrobank for one. Nationwide for another.

 

They can manage sure but they won't reach their full potential profit.

I thought Metrobank had already gone tbh.

I wouldn't mind Nationwide going as they were about the only big Building Society not to float and typically the one in which I had savings. Not that I bear a grudge or anything.

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9 minutes ago, Frank Hovis said:

They can manage sure but they won't reach their full potential profit.

I thought Metrobank had already gone tbh.

I wouldn't mind Nationwide going as they were about the only big Building Society not to float and typically the one in which I had savings. Not that I bear a grudge or anything.

Itll be like Scabby BS. Itll go under.

DOnt know about MB. Like all bnaks you only find out they are bust after the event.

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6 hours ago, A_P said:

On the whole, the 10% of the balance every year seems pretty standard on a fixed mortgage now Stokie. The only bank (I didn't check them all when applying) I saw offering unlimited overpayments is First Direct, whereas HSBC don't.

Yes on my current morgage that’s the case and it’s highlited not so if I get another one

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