does this mean you can still overpay?

lethal0r

quoting HSBC

For fixed or discount rate mortgages, an Early Repayment Charge applies if you increase your standard monthly payment by more than 20% or repay, by any other method, the whole or any part of the mortgage, over and above your standard monthly payment, during a fixed or discount rate period.

so I can increase my monthly payment by 19% without incurring the ERC?

koexelek

lethal0r wrote: »

quoting HSBC


so I can increase my monthly payment by 19% without incurring the ERC?

By 20%, the way I read it

You must not EXCEED 20%, so 20% should be OK

Robert_Sterling_3

At first sight it looks as if 20% is OK but read your Terms & Conditions carefully.

lethal0r

thanks. why do they have to make it confusing with the 2nd line! "any other method". what does that mean? surely theres only one other method and thats a lump sum repayment!

or perhaps I can also trade my old atari st in as a months payment.

dimbo61

Its a max of 20% a MONTH and not a lump some payment at the start of the year !!!
You could always contact your lender and ask what it would cost to shortern the term by a couple of years and hence be paying more each month and then pay an extra 20% on top.
You cant shortern the term for less years than your existing fixed/tracker deal last !!!

dimbo61

sorry should read lump sum !!!

Margin_Walker

Yeah it is 20% a month annd it has to be taken as part of the standard direct debit rather than as an ad hoc payment. If you ring them they can set it up for a specific amount of time or until futher notice. You can obviously cancel the overpayments at any stage if money is tight.