A&L 10% repayment option

worto03

10% Overpayment Facility – Customers who choose one of these products will have the option of making a one off annual payment of up to 10% of the Interest Bearing Balance (IBB) on their mortgage (without incurring any Early Repayment Charge). Any such overpayment must be for a minimum amount of £500, over and above their monthly mortgage payment, and can only be made during each month of January which falls during the period which an Early Repayment Charge is payable.

The above is copied from my T&C's this maybe a silly question but I'm a bit new to this, does the last sentance mean I can only do this in Jan and what do they mean by 'which falls during the period which an Early Repayment Charge is payable.' ?

Maybe I need to change my mortgage if thats the case.

Thanks,
Steve.

pennies2pounds_3

Basically it means that you can overpay in the month of january for as many years as the fixed or variable rate is valid for. So if its a fixed rate or discounted rate for 2 years you will have 2 januarys to overpay, so you save as much as you can into a high interest account until january and then pay a chunk off your mortgage. Hope this helps.

Ps the early repayment charge is usually within the time period that the fixed , discount or variable rate that the mortgage is for .

worto03

Ah thanks - your right it's 2 years so the plan would be to save up until Jan then pay off as much extra as poss. then the August after that I'll have been in for 2 years anyway so I can have a look at moving the morgage to a more flexible one.

Cheers for translating,
worto.

pennies2pounds_3

No problem.