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Confused about overpayment charges!
Bigbobby
Posts: 60 Forumite
I am currently on an SVR with Halifax. Balance on anniversary date on 1st Jan was 67k. After making overpayments balance is now 62k. I have been told on SVR I can make as many overpayments as I want without incurring charges.
Current interest rate is 3.99% and I am thinking of going onto a fixed 1.99% for 2 years from next month. I have been told I would incur charges if I pay more than 10% of the balance. Is this referring to anniversary balance or the balance from date I go onto fixed rate?
Also if I were to incur overpayment charges how is it calculated? As a % of the anniversary balance or the balance on the date the fixed rate started? Or is it just a %
of the amount above the 10% allowance e.g I overpaid an extra £1000 above the allowance, charge is 5% so charge is £50?
Current interest rate is 3.99% and I am thinking of going onto a fixed 1.99% for 2 years from next month. I have been told I would incur charges if I pay more than 10% of the balance. Is this referring to anniversary balance or the balance from date I go onto fixed rate?
Also if I were to incur overpayment charges how is it calculated? As a % of the anniversary balance or the balance on the date the fixed rate started? Or is it just a %
of the amount above the 10% allowance e.g I overpaid an extra £1000 above the allowance, charge is 5% so charge is £50?
0
Comments
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Who told you you would incur charges for overpaying more than 10% while on the SVR?0
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Charges are when on the fixed rate
"I am thinking of going onto a fixed 1.99% for 2 years from next month. I have been told I would incur charges if I pay more than 10% of the balance."0
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