Halifax overpayments

sturgeon

I have just switched to a 2.69% deal for 2 years and want to make the most of it. The adviser told me I am able to make 10% overpayments each calendar year maximum. My question is, with Halifax is this 10% of the monthly mortgage payment (so £50 if it was £500) or 10% of the remaining balance of the mortgage?

I presumed it was 10% of the capital but a search online led me to an example breakdown where the 10% was actually a percentage of the monthly payment rather than the remaining balance of the whole mortgage.

opinions4u

It's 10% of the balance.

dumpallhere

Overpayments are dependent on the deal you go for. The mortgage offer (if you have one already) or Key Facts Illustration document should clearly state the overpayments allowed, if any.

With Halifax, all the deals that I am eligible for as a FTB clearly state that I can make overpayments to the tune of max. 10% of outstanding balance (at beginning of mortgage year) during the following 12 months without incurring early repayment charges.

ValHaller

sturgeon wrote: »

I presumed it was 10% of the capital but a search online led me to an example breakdown where the 10% was actually a percentage of the monthly payment rather than the remaining balance of the whole mortgage.

You are probably taking the example out of context - it is probably showing you that overpaying 10% of monthly payments can significantly shorten your mortgage.