10% Morgage Overpayment Payment........ 10% of What.

LULULU1

I am looking at a 10 year fixed mortgage with C & G and am allowed to over pay by 10%. My question is what does this mean exactly. Is this 10% from say a balance on a given date, like 1st Jan of each year, Is it 10% of you original loan or what.

Many thanks

opinions4u

I'd give them a call after 8am on Monday.
0800 028 0639

treb1971

It's normally 10% of what you owe, per year. So if you start owing £100,000, you can overpay £10,000 in that year.
Then, the next year, your outstanding will be £100,000 - £10,000 - whatever your monthly payments cleared = £85,000 say. So you can repay up to £8,500 without penalty. And so on. Hope this helps?

ETA: Do clarify with the C&G though - especially if you are planning to make full use of the overpayment facility!

Leighthal

Look at these deals below:
http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/10_Year_Fixed_Rate_Mortgages.aspx

The overpayment allowance is 10% of the original loan each year.You really need to talk to C&G to clarify this.