10% Overpayment - Opening or Closing balance?

samnorris2

Hi everyone,
Just after some clarity on the typical 10% overpayment policy on most fixed rate deals.

If the policy allows you to overpay up to 10% of the outstanding balance each year, is it on the opening or closing balance?

Thanks

Sam

dimbo61

If at the start of the year IE 31 dec/1 jan you owe say
£100,000 you are allowed to overpay 10% of that balance.
BUT some lenders work it differently so read the paperwork that came with your mortgage or ring the mortgage centre.