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10% overpayments
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louloubelle79
Posts: 411 Forumite
Hi
May be daft Q but my lender allows 10% OP every year, we have a 10 year fixed rate and hope to be MF at the end of those 10 years (fingers crossed!).
Do you ring your lender to find out the 10% you can overpay each year or can I work it out and just try and make those payments? Is it calculated from January or from the month your mortgage started? Understand what I can OP each year will decrease, so just trying to work things out...
Thanks
May be daft Q but my lender allows 10% OP every year, we have a 10 year fixed rate and hope to be MF at the end of those 10 years (fingers crossed!).
Do you ring your lender to find out the 10% you can overpay each year or can I work it out and just try and make those payments? Is it calculated from January or from the month your mortgage started? Understand what I can OP each year will decrease, so just trying to work things out...
Thanks
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Comments
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Mine is calculated from the month my mortgage started. With my bank I can see total overpayments and how much allowance I have left when I log on to the internet banking but I can also call them and get that information.Original MF Date January 2035. MF Date February 20220
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Over 10 years (5 years even) investing would almost certainly beat any mortgage, and by keeping a mortgage you're more protected against title deed theft...This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Mine is 10% per calendar year so whatever your balance is on 1st Jan. I would ring up and ask what your terms and conditions are for your mortgage. Also u can ask them how much of your 10% you have left to pay so u don't incur a charge.Balance at start of mortgage Dec 2011 £87500
1 Jan 2015 = £73,735 Overpayments = £3,360 (average £280 p/m)
1 Jan 2016 = £66,558 Overpayments = £4,770 (average £397.50 p/m)
1 Jan 2017 = £57,756 Overpayments so far Jan £0 Feb £550 Mar £3022 April £690 May £1513 total £57750 -
Mine is from date mortgage taken out.
Best to check with your lender
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One debt remaining. Home improvement loan.0 -
Mine is 10% of the initial mortgage when the 10 year fixed commenced - so, if mortgage was £100k, I can OP £10k p/a. And its annually from the date the fixed rate started, so for me it runs from 1st Aug to 31st July. I'm with Nationwide.0
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Thank you will call Santander tomorrow to find out0
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Just seen on their website
You can overpay up to 10% each calendar year (January to December) on your fixed rate loan amount without paying an early repayment charge. A minimum payment of £500 applies.
So assuming January 2018 will be 10% of my mortgage then not what I started with January 2017 ?!0 -
Each lender will have slightly different rules. If you want to pay the 10% as soon as possible each year, the anniversary will be important. Mine is 1st July and if you read my Project 2018 thread you'll see that getting the balance on the anniversary can be easier said than done! But you're better off calling your lender to ask what their rules and dates are.
One minor point you are allowed to pay 10% of the outstanding balance each year so by paying that amount every year for ten years you won't pay it all off and you'll still have a bit left to pay. This is because you don't get to pay 10% of the original balance each year, so your overpayments shrink.0 -
Thank you I aim to save some also to hopefully pay what's outstanding at the end of the 10 years ..fingers crossed0
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