Hi,
I'm facing redundancy so looking at options to protect my mortgage for possible hard times ahead. One Idea I've had is to use some of my redundnancy money to 'max out' my mortgage overpayment allowance for the year. As well as the obvious benefit of reducing my debt, can any overpayment be used as a replacement for any missed payments later or be used as a bargaining chip?
For example if my total monthly mortgage payments for the year are £10,000 and I overpay £5,000 at the start of the year, but then struggle to pay my monthly mortgage two-thirds of the way through the year, will the overpayment be taken into consideration by the mortgage company, or considered irrelevant? Would it help me negotiate a mortgage holiday under conditions of hardship?
Any advice would be appreciated!
MrO
I'm facing redundancy so looking at options to protect my mortgage for possible hard times ahead. One Idea I've had is to use some of my redundnancy money to 'max out' my mortgage overpayment allowance for the year. As well as the obvious benefit of reducing my debt, can any overpayment be used as a replacement for any missed payments later or be used as a bargaining chip?
For example if my total monthly mortgage payments for the year are £10,000 and I overpay £5,000 at the start of the year, but then struggle to pay my monthly mortgage two-thirds of the way through the year, will the overpayment be taken into consideration by the mortgage company, or considered irrelevant? Would it help me negotiate a mortgage holiday under conditions of hardship?
Any advice would be appreciated!
MrO