Mortgage Overpayments

[cylon]

Hi

So am with Barclays and they allow me to make 10% overpayment over the year.

I called them to ask how much I can do. As an example, lets say £20000 overpayment this year. Now I have been overpaying by lets say £1k a month, so over 6months i have overpaid £6k.

I asked if the £6k come off the £20k, but they said no, (so total overpayment would be £26k)

I am not 100% confident in his reply, would anyone be able to clarify if they have done similar,

thanks

[pmanson]

I would say that with your example:

£200,000 mortgage - would allow for a total of £20,000 overpayments in a given year

I'd need to check (so don't quote me on this) I think Nationwide allow me to make payments up to 10% of the original mortgage balance.

Eg. if your current balance is £200k but your original mortgage was for £400k you could make up to £40k overpayments each year.


In a nutshell, get them to put in writing what they've told you so that you're covered

[greygoose]

With Santander it is up to 10% of the current balance each year so 10,000 if 100,000 mortgage, if I overpaid monthly then it would come out of the 10,000 limit.

[Killer2005]

greygoose said:

With Santander it is up to 10% of the current balance each year so 10,000 if 100,000 mortgage, if I overpaid monthly then it would come out of the 10,000 limit.

It's the same with Barclays (Former employee for reference).

[cylon]

thanks all, i will attempt to get this in writing. Dont want any unexpected ERC's.

[markiii]

I have an identical scenario with Godiva, I too was doubtful but so far hey have been fine with me overpaying x per month and by 10% of outstanding balance per year

[Imasurv]

My Nationwide fixed rate allows me to overpay by 10% of the original loan in any 12 month period.

[doogle83]

Killer2005 said:

greygoose said:

With Santander it is up to 10% of the current balance each year so 10,000 if 100,000 mortgage, if I overpaid monthly then it would come out of the 10,000 limit.

It's the same with Barclays (Former employee for reference).

That's how it was for me when I paid off my Barclays mortgage (18 months ago).

[lythaby]

I agree with the above, also with Santander you can choose to make it a capital repayment or reduce the term.

[Edible Roadkill]

Mine is 10% max overpayment each year of the original amount borrowed, which is now a fair bit more than the outstanding balance so my maximum overpayment is more like 15%.

Perhaps this is also applicable to you?

Edited by Edible Roadkill on Thursday 14th March 20:19

[macushla]

cylon said:

thanks all, i will attempt to get this in writing. Dont want any unexpected ERC's.

You will already have it in writing in your original mortgage offer which will explain it exactly.

[KhabibSmesh]

I'm with Barclays/Woolwich.

In the event I make an over payment I call up and just say I want to overpay and want the term of the mortgage reduced. Other option is reduce you future monthly mortgage payments slightly over the current term.