Overpaying Santander mortgage in first year - any penalty?

tsg20

As of yesterday, we have a fixed-rate mortgage with Santander. We're allowed to repay 10% of the capital in any year, without incurring any fees. Looking through the terms and conditions, "year" means calendar year, and it's 10% of the capital at the beginning of the year, i.e. January 1st.

So, the situation in 2014 is clear to me - we can repay 10% of the capital remaining on January 1st (on top of the regular monthly payments). What's not clear to me is if we're allowed to do this in 2013, as on January 1st the loan didn't exist. Does anyone know if this means we can't make extra repayments until next year, or if we can just repay 10% of the remaining capital right away?

Let_Us_See

Why not simply phone Santander? Surely better option then asking for conjecture on this forum?

tsg20

I certainly will do - but I tend not to trust advice given over the phone, rather than in writing, when it applies to transactions with potentially large penalties, as there is no proof of what has been said. I imagine that the terms and conditions have a standard legal interpretation (presumably other lenders use similar wording?), and I also imagine that there are people on this forum who have tried this before.

benson1980

I have a Santander mortgage and when I spoke to them about overpaying it was January or nothing- thats the one and only overpayment window. Its pretty clear on our mortgage terms so I'd say no

_Andy_

There's no conspiracy here - just ring them and ask.