Hsbc mortgage overpayment allowance

adonis10

The annual overpayment allowance is calculated as a percentage of the amount drawn down for the first year of the mortgage. The allowance is recalculated annually for each year when an ERC applies on the anniversary of the date of drawdown (or following a switch to a new mortgage that has an ERC) on the outstanding balance of the mortgage."


https://www.hsbc.co.uk/1/2/!ut/p/c5/hYzNboJAFEafxSeYyzggLK-AQGD4qQwimwkBbSVVCBCgPH1ZdOGuOZsvOfkOKcjGq5wen-X4aF_lN8lJoUmXeroLjLqR6uiAZ9UEO1EBHGXzV02aDrrsEABA5tngsSMDlZ8U8Pb_vC8kBybPjd7xnzEPVnNKmzWhocUX3lyW0cJ5MNK4zj7EEdH3hRAkdNvnjVxJcXgrm4kGKAzNRz1TWERJ-leGdmwGydPQiWukUS3jxZJ3qGS0581tDoN7wg1chx63jTPvEXha0TFAgMpQslNiI-98u7d3pHuK6avF3S-ceOLI/dl3/d3/L0lDU0lKSmdwcGlRb0tVUmcvb0tvZ0FFSVFoakVDVUlnQUlBSXlGQU1od1VoUzRKUkVBUUFBLzRDMWI5V19OcjBnQ1VneEVtUkNVd2chIS83X0gySThIMDQySE9DUTYwQVU5NktBOFYxNE8yLzZTemRhNzIxMzAwMDcvMzE2NDI1NTkwODE0L29yZy5hcGFjaGUubXlmYWNlcy5wb3J0bGV0Lk15RmFjZXNHZW5lcmljUG9ydGxldC5WSUVXX0lELyUwaHRzZSUwbW9ydGdhZ2VhcHAlMGxhdW5jaCUwcXVpY2txdW90ZSUwdmlldyUwYXZhaWxhYmxlX3JhdGVzLmpzcA!!/

On the particular product I am considering, there is an overpayment allowance of up to 10%.. Does this mean 10% of the loan at the start of the year in question, per the above? Seems quite a lot.

AnotherJoe

removed attempt to create a shorter link

Lemonsqueezer78

That's correct - the 10% is calculated from the mortgage opening balance for the first year - and then it's recalculated as 10% of the current outstanding mortgage balance as at the start of each new 12 month period after that.

seamus123

I have recently taken out a 40k mortgage with hsbc over 8 years the advisor was very vague when we asked about over payment, I am trying to find out how much the overpayment charge would be if I pay of £10000 in one lump sum, any advice would be appreciated, thanks in advance

Toonsy

seamus123 wrote: »

I have recently taken out a 40k mortgage with hsbc over 8 years the advisor was very vague when we asked about over payment, I am trying to find out how much the overpayment charge would be if I pay of £10000 in one lump sum, any advice would be appreciated, thanks in advance

It depends on the term of your deal.

Toonsy

OP, basically using rough made up figures....

If you start a mortgage today worth £150,000 you can overpay £15,000 but no more until 24/7/18.

Then say on 24/7/18 the balance left is £100,000, you can overpay £10,000 but no more until 24/7/19.

Etc etc

adonis10

Toonsy wrote: »

OP, basically using rough made up figures....

If you start a mortgage today worth £150,000 you can overpay £15,000 but no more until 24/7/18.

Then say on 24/7/18 the balance left is £100,000, you can overpay £10,000 but no more until 24/7/19.

Etc etc

Yeah, got it now.

Shame the funds aren't there for big overpayments, ha