calling all peeps with Tesco mortgage

moneysavinggirl40

Do you know how Tesco work out their ERC % when redeeming mortgage? I know there is a £90 exit fee.

If on a 3 year fixed. For eg.

In year 1 if you overpay above 20% overpayment allowance for that year then there is a 3% ERC. Does anyone know:

if A)

the 3% is on the original amount you borrowed. So ERC would be £3000 on a mortgage of 100K

or

3% of the amount you have breached by. Say you overpaid too much and overpaid an extra £1000, so £30 ERC penalty.

In year 3 of initial deal you are allowed your 20% overpayment allowance- as always, but this year you can also pay off all your mortgage and be mortgage free. There is ERC of 2%, if u overpay by more than 20% , you decide that u want to do this. what are the penalties for completing mortgage early? should you wait till month 37 to make a lump sum overpayment and complete mortgage then, as ERC's only apply within initial period. To exit they do charge £90 also.