Mortgage overpayments after fixed-term period

benjii

Hi,
I'm trying to select an appropriate 2-5 year fixed rate mortgage. Most of them allow overpayments of up 10% of the outstanding balance per year without incurring any charges.

Does anyone know if the limit typically applies only during the promotional (fixed term period) and I will be able to overpay more later?
Many thanks.

opinions4u

Most mortgages have no penalty during when the SVR is being charged.

Just check the clauses in the mortgage you choose to take.

benjii

Does the following make sense then? I take a 5-year fixed rate mortgage and I only overpay up to 10% (of the outstanding balance) per year. Then in the 1st month after the fixed period ends I make a large (budget permitting) overpayment which may exceed the initial 10% limit and then quickly take a new fixed rate deal (assuming my existing SVR is not very favorable).
Is my understanding correct?

opinions4u

Yup.

That should work.