question on overpayments

want2bmortgage3

just a question on a woolwich mortgage, similar to many others where you can overpay 10% of the balance each year.

if you have already paid 10% in the first year, what would happen if you sent more money to the overpayment account details?

if you have money ready to overpay for the next year, is the only option to put it in a seperate savings account ready for the date when you can overpay the 2nd year?

Jimbo1976

Check the dates from the offer letter/key facts illustration to see when the year runs from as these don't tend to run to the end of a calendar year.

If you pay beyond the 10% you normally have to pay an early repayment charge (ERC), this will vary from rate to rate but it your offer letter/KFI will tell you what it is. If you've got a short term rate sometimes the woolwich ERC's are only 1%.

The wise people on these forums tend to point out that you should compare what rate your mortgage is with what rate you can get for a savings account, as sometimes you are better off investing and paying it off after your ERCs expire