Nationwide Fixed Mortgage overpayment question

re08149383

Hi,

I understand the Nationwide allow 10% overpayments now on new fixed mortgages instead of 500 a month. Is the 10% on the original mortgage amount or on the remaining balance. If it is the latter it would be confusing would it not, on what you can repay without charge?

amnblog

These are restricted to 10% of the outstanding balance per year.

Not sure what is confusing about it. You will get a statement every year so you know where you are.

JimmyTheWig

amnblog wrote: »

Not sure what is confusing about it.

It's confusing until you know that it is the balance as at the start of the year where they get the 10% from.

It might have been 10% of the initial balance. Or 10% of the balance at the time of the overpayment. Without knowing it is confusing.

dumpallhere

From lender's website:

You can make overpayments of 10% or less of your original mortgage balance per mortgage anniversary year without incurring an Early Repayment Charge (ERC).