How much can I overpay?

Heather2012

Hi everyone,


I'm wondering if you could help me. I'm trying to work out the maximum I canoverpay each month. I am allowed to overpay 10% of my balance each year. ObviouslyI just work out 10% of the balance and divide it by 12, but is this based on10% of the balance on 1st Jan 2013 or 1st Jan 2014?

If it helps I have a Halifax mortgage fixed at 2.29% for 2 years.

Hope this makes sense!

Thanks,
Heather

Watty1

I'd call the Halifax just to check - I am with NatWest and could overpay 10% per year and that was 10% in the mortgage year. So if your mortgage year was feb to feb you could pay 10% now and another 10% in March. Hope that makes sense. Halifax may have diff rules but that was how it worked for me with NatWest.

Heather2012

Thanks Watty,

My mortgage year runs Jan to Jan but I'd like to overpay monthly rather than yearly, I was just trying to work out the max I could overpay each month, rather than having to save it up and pay at the end of the year...

Heather

Watty1

Ah I see. Well for me it has always been 10% of the balance outstanding less any amount already paid....which probably means it is less than 10% really but I've never argued about it because until the last few months I've never really been consistent in my ops.

LisaLou1982

Hiya

Yes definitely check with your lender as im with the skipton and i can overpay 10% of the original balance from when i took out the mortgage, rather than 10% of the current balance