How does overpayment get calculated on the 10%?

topcat007

On nationwide fixed 2.94% it states "Early repayment charges apply for any payments made which exceed your overpayment allowance of 10% or if you exit your mortgage early. Charges do not apply for any repayments below your 10% allowance."

So does this mean if my monthly payments are £300 i can only a MAX of £330 before going into the penalty zone?

Or does it mean on the remaining mortgage balance per year? So if i had 70k left i can overpay 7k a year?

Please help

kingstreet

It's 10% of the original mortgage amount per annum, not the outstanding balance.

Older accounts (pre 28/05/13) still have a £500 per month limit.

Slayerx

Check some lenders will do it on the Anniversary of the product and some do it Jan to Dec.

kingstreet

Nationwide is 1st of the month following the anniversary of the month of completion.

For example, complete on 20 July, your allowance starts on 1 August each year;-

http://www.nationwide-intermediary.co.uk/products/mortgage_features/overpayments

LHW99

Britannia allows overpayment in the current year of up to 10% of the O/S balance as it was at the end of the previous calendar year

kingstreet

The OP has a mortgage with Nationwide.