MSE News: Christmas mortgage overpayments could save you hundreds

Terrible advice for me, particularly the quote from the mortgage sales man
With early replayment charges, any over payment made in December attracts a 5% fee, whereas one overpayment of up to 10% is charge free during January.

Could you make it more prominent that this is a really bad idea for lots of people?

Alliance and Leicester. I am not alone in this, as it seems each January their phone lines have lots of calls about overpayments


I quote from their web site:

You said:
I am an existing Alliance & Leicester mortgage customer, can I make payments without being charged t ...

Our answer is:
Many of our mortgages let you pay off up to 10% of your mortgage balance each year without being charged the Early Repayment Charge that applies on the product. You can pay up to 10% as a lump sum in January of every year. This gives you the opportunity to reduce your outstanding mortgage balance and reduce your monthly payments.