mortgage overpayment query

tiggerjj

Hi Guys, and thanks in advance.
I am due to complete as a FTB on friday with an offset mortgage from the woolwich.

I have read through all the T&Cs and can not find anything about any penalty charge for overpaying. In section 10 of the offer it states that there is an ERC of "1% of the original loan amunt until 31/04/13 on full repayment"
ie nothing about what I would liek to know.

So i called up Woolwich and they said they can not answer my question until I complete, this seems a bit crazy to me as surely they all know the answer and it must be quite a common question??

So im hoping that one of you guys might be able to clarify,

thanks in advance

Togger

AngelsMadv

They have to be able to tell you before you complete.

It's part of the key facts illustration that they have to provide you with. Just ring them back, I'm sure you just got an operator who was having a bad day (read - is incompetent).

I cannot give you a standard as it varies so much. On my mortgage, the figure is 10% of the capital each year without penalty. Good luck with your first purchase.

HTH:)

VIGILANT22

Refer to Section 11 not 10.........

11. What happens if you want to make overpayments?

tiggerjj

section 11 states "you can make lump sum overpayments on the mortgage, however early repayment charges may aply. for more info please refer to section 10"
hence me quoting section 10....

just found an email from the woolwich advisor stating a 10% limit but no idea where that is in the paperwork, asking him now.......

surely this should be clearer, or maybe im just being blonde.... hehe

MrsManda

The basic details of the Woolwich offset mortgage on their website states that:

Overpay as much as you like, whenever you are able. Early repayment charges may apply on full redemption of your mortgage

Early repayment charges may apply on full redemption of your mortgage

So I presume the answer to your question is providing you don't pay off your entire mortgage before the redemption date you should be fine though I'd want that confirmed by someone at Woolwich. These details, complete with the charge for early redemption should be laid out in your original offer document.

You are right, it should one of the things which is crystal clear in your offer document and I'm surprised it isn't

luckyfool

If it is genuinely an offset product then you can overpay any amount as long as the full mortgage is not redeemed. You can also put extra money into a linked savings account, current account, or ISA and offset that money against your mortgage balance as well.

tiggerjj

thanks guys, so everything should be ok, think i will just wait until friday then i can speak to someone, too much stuff to organise to hassle them more, and you guys have all reassured me, thanks