Halifax maximum overpayment without incurring a penalty

jonny2510

Does anyone know whether the maximum overpayment that can be made on a Halifax fixed rate mortgage is 10% of the original mortgage amount, or 10% of the outstanding balance?

I've spoken to two separate advisers/customer representatives at Halifax today, who've both said it's the original mortgage amount (not the current balance), but the cynic in me thinks (expects) it should just be the outstanding amount.

Does anyone know???

Thrugelmir

From the Halifax website.

Paying a lump sum off/extra money towards a mortgage

You can do this, but if your mortgage is subject to an Early Repayment Charge you may have to pay some of that charge according to the amount you are paying off.

The limit on any extra payments you can make each year before the charge applies is 10% of the mortgage balance. This means if you have a mortgage subject to an Early Repayment Charge you can pay up to 10% of your mortgage balance before incurring the charge, unless you go on to repay or change the rest of the loan within the next six months. The charge varies, depending on how long you have left on your mortgage deal.

The 10% overpayments limit is a concession and could be withdrawn at any time.

If you want to make an extra lump sum payment, your monthly mortgage payments will be lowered to repay the reduced overall balance on your mortgage over the same remaining term. However if you want to remain paying the same monthly amount then we can recalculate the remaining term.

kingstreet

To reinforce what Thrugelmir has dug up, here's the text of a Halifax offer for a two year fix I did in July;-

Currently, as a concession, in any 12 month rolling period you may repay up to 10% of the amount outstanding on your mortgage product(s) without having to pay an early repayment charge. We reserve the right to change or withdraw this concession.

jonny2510

Thanks for the replies.

I'd already seen the website, and my mortgage offer states 10% of the amount outstanding. I rang Halifax to find out the exact amount (twice) and both times was told it was 10% of the original mortgage amount!!!!

I think I'll play it safe, and work with the outstanding figure for now.