Can I overpay my mortage?

[AndyC_123]

Hi

Looking to overpay my mortage to try and keep the cost down a bit, can't get hold of the bank manager at the moment so wondered if anyone here can help me?

The overpayment bit writes as follows:

Can I prepay the Loan?
Voluntary Prepayments
You can prepay the Loan at any time if:

(a) you give us at least 5 business days' written notice;

(b) the amount of the prepayment is equal to 10% or more of the Limit or, if
less, the balance of the Loan; and

(c) you also pay us all accrued interest on the amount prepaid.



Is there a limit on what I can pay and when?

If I have (for example) £113400 to pay over 15 years, 1 year in now. Rate is 2.35% over base (variable)

Thank you

[Sarnie]

You can overpay all UK residential mortgages by at least 10%.

Some allow up to 20%. Some products will be unlimited.

From what you have posted, yours looks to be 10%

[OutInTheShed]

I read what the OP quoted as only allowing 'prepayments' of at least 10% of the loan.

Sounds like they don't want people chucking in an extra £100 here and there?

But maybe they just have another name for that!

[StressedEric]

The way it works with my mortgage provider, if you are on a fixed interest rate you can overpay 10% per annum of the capital outstanding (and the year starts 01 January)

You can pay in one lump sum or increase your direct debit over 12 monthly payments. You work out the amount from your annual mortgage statement , which I receive in early January.

But you don't have to wait until January 2023, you could pay this year's (2022-2023) 10% now if you wish or over the next three months.

Any overpayment of more than 10% attracts a fee.

If you are not on a fixed rate, I believe you can overpay as much as you like.

When I asked the nice lady on the phone why I can't pay more than 10% she said, "Don't be daft, everyone would just be paying off their mortgages!"

Edited by StressedEric on Thursday 29th September 11:10

Edited by StressedEric on Thursday 29th September 11:11