overpayment - bit different situation

pushsneha

After few hiccups, finally we have managed to move into our flat. Purchase price £122000, deposit 25% and mortgage outstanding £91500 starting from 04/10/2012. Its 2 year fixed mortgage on 4.39% for 25 years with 10% annual overpayment allowed. I have no idea to keep it that long though.


Yesterday I went to Santander branch and paid 10% overpayment and enquired about the time frame when i can do another 10% overpayment. Lady at the counter said I can do this overpayment after 1 year now so in Oct,2013 and when I called their mortgage department they gave different answer. They said I can do this additional 10% overpayment from 1st Jan,2013 onwards which left me really confusing as whom to trust.


Anyone got any idea please? Obviously I am keen to do overpayment without any charges.


thanks,
Neha

happycamel_2

I'm with Santander, they look at the balance on 31st December and from 1st Jan you can overpay 10% of that balance, at least that is true of the 4 products I've held with them so far. Check your terms and conditions though, it is clearly state in there.

kingstreet

http://www.abbeyforintermediaries.com/library/lib_32.pdf

Page 7;-

With a standard mortgage, however, you can repay up to 10% of the money you owe us (subject to a minimum capital payment of £500) at the beginning of each calendar year without having to pay an early repayment charge. You cannot carry forward any unused element of the 10% concession into future years. You cannot take advantage of the 10% free repayment allowance if you are repaying all of the money you owe us upon the sale of your property. If the booking fee has been added to the loan, you can repay this within 14 days following completion, without affecting the 10% allowance.

pushsneha

Excellent. many thanks for your reply.

dimbo61

So the people at the mortgage center are right and you can overpay another 10% after the 1st of jan 2013 if you have the funds !!
Well done on getting your first home and keep up the good work of overpaying