HALIFAX over payment charge

Irvine90

Hello I have a mortgage with Halifax which allows me to pay a 10% over-payment every year but last year i missed out on the over-payment because i thought it was on the anniversary of the mortgage (1st Feb) but it is Jan 1st.
so anyway i paid the 10% at the start of the year and my mortgage is down to £30,000 but i have another $5000 i want to pay off to make up for last year and i am trying to figure out how much they would charge me for this.

i'm not allowed to post a link but readin the EARLY REPAYMENT CHARGES section on Halifax's site it seems to be worked out by how much is left on your mortgage so £30,000 = 3% so if i over pay £5000 i would have to pay £150. does this sound right?

clairebeth

No, it would be 3% of £30k, so £900.

Irvine90

this is the worked exsample they use

Amount you owe: £50,000
Percentage early repayment charge payable: 5%
Total early repayment charge payable: £2,500
Amount you repay early: £25,000
Total early repayment charge payable: £1,250

neverbrokensarah

Can you hold it a savings or current account with the same or higher interest until next year?

GarthThomas

clairebeth wrote: »

No, it would be 3% of £30k, so £900.

That seems pretty unlikely.

clairebeth

What is the wording they use? Do they say 3% of balance or 3% of overpayment? The example they have used is pretty useless because the £1250 could be 5% of the remaining balance (£25k) or 5% of the overpayment (also £25k).

clairebeth

Here it is:

Amount owed on 1st Jan: £50,000

Percentage early repayment charge payable: 5%

Total amount of regular/lump-sum overpayments made between 1st Jan and 31st Dec: £10,500

Less the amount of regular/lump-sum overpayments where early repayment charges do not apply (10% of £50,000): £5,000

Total amount of regular/lump-sum overpayments where early repayment charge applied: £5,500

Total early repayment charge payable (£5,500 x 5%): £275

So yes, £150 will be your charge.

anniecave

The example says that 5% is only an example. I think therefore Irvine needs to to check the mortgage documents for the correct % rate to use.

clairebeth

Ah yes, is the 3% a figure you have in your own mortgage agreement, Irvine? And yes, sorry, the £900 would be if you paid off the whole balance, I was thinking along the lines of my own erc with my current remortgage!