Barclays Overpayment terms

Lizzie1977

Hello,
We are fortunate enough to be able to repay some of our mortgage. When we took our a 10 year fixed mortgage with Barclays four years ago we understood that we could overpay up to three times our monthly payment a year. (This increases to six times nearer to the end of the term) without penalties. When we rang the Barclays call centre we were told we could, in fact pay three times our monthly repayment each month without penalty. We questioned this and were told people often find this confusing as UK branches often give incorrect information but specialist staff in Mumbai (where they said they were based) are trained to deal with such questions. We were told people are often confused and the call handler predicted we would ring back as we would doubt what he had told us. We did, a number of times over the next couple of months. Each time a different call handler told us the same thing. The only time we have been told something different is when we rang our local branch. They explained the repayments as we were originally told. Has this happened to anyone else? The call centre say they hear this a lot. If we can repay at the faster rate we will be much better off if we do so (they tell us we can pay off our mortgage in a little over a year rather than the six years we have left.) Our mortgage paperwork suggests we may be overpaying into a prepayment pot but does not make it clear if we would then have to pay overpayment charges when we finish paying off the mortgage early. Any help/ suggestions/ explanations gratefully received.

Thank you.

MovingForwards

https://www.barclays.co.uk/mortgages/existing-customer-centre/overpayment-underpayment-explained/

Straight from the horses mouth.

Have you still got your mortgage papers to check what the terms are?

Lizzie1977

Thank you. Yes. They aren’t very clear. They do say we can only pay 5% of the total on one page without penalties. On another they talk about the difference between a lump sum and an overpayment. Had I not been told otherwise by the call centre I would have assumed that you could only overpay 5% too. It seems it may be different if you do it in smaller monthly amounts but this is not clear on the paperwork. I’ll have a read through the link. Thanks again.

getmore4less

Overpayment limits and early repayment charges

Before making an overpayment, please check your mortgage documents to make sure that you’re able to do so. The documents also include details of any overpayment limit and early repayment charges you may have to pay. Many of our mortgages let you overpay by up to 10% of your balance in every 12-month period. Some let you overpay by more, while others (like our 10-year fixed rate deals) have lower overpayment limits.

The 3 times monthly is separate from the annual limit where ERC may kick in

Looks like you may have the 5% limit on your 10y fix.