Early repayment

RubyBish

My mortgage started in November.
For the first 3 years there is a early repayment charge for repayments >10% a year.

I repaid 10% in April. Does the next year start in November or do I have to wait until 1st january to make the next 10% overpayment to avoid the charges?

cupid_s

with how my mortgage works it would be that come november you could pay another 10%. I would just check with the mortgage provider. When I had a lump-sum to pay off I just called them and they sent me a letter clarifying exactly what charges I would incur

alanobrien

RubyBish wrote:

My mortgage started in November.
For the first 3 years there is a early repayment charge for repayments >10% a year.

I repaid 10% in April. Does the next year start in November or do I have to wait until 1st january to make the next 10% overpayment to avoid the charges?

Be careful it could be a calender year. Check with the mortgage provider, better still get something in writing from them to confirm when their year starts and ends.

Better that than pay a redemption fee.

kenshaz

It will be from when you took the mortgage out ,not calender years,for example if you took out a mortgage for 25 years it starts from the day you completed

regularsaver1

Yeah i agree - from when mortgage started (Halifax does)

savedup

Hi

It may be worth the OP ringing their mortgage lender on this to make sure.
I used to have a mortgage with Abbey until last year , and they used the Calendar year for the purposes of overpayments.Even though I took the mortgage out in July.

May be wise to check.

regards

Savedup

RubyBish

Phoned chelt and glos this morning and they tell me they work by calendar year, so I will have to wait until January.
From the repsonses it would seem each lender applies a different rule. I just wish they would list these details on their websites.