Paying off your mortgage

nickbooth1970

I have been good. My wife and I have been saving, and paying our mortgage, and now have the same amount of cash as the mortgage value (plus some extra spare) Being nearly 50, the thought of being mortgage free opens up more freedoms and interest on saving will be low compared to the 3.4% on my mortgage.
Here's the weird question as I am arguing with my provide over a few hundred quid. I am allowed to over pay by 10% each year, this year I have overpaid by £800 ad allowed to over pay by another £2650 without incurring charges. My deal (which may have been a bad one now) means that I have to pay 5% extra until 30th April when it goes down to 4%. reality is, if I leave it a year, I will pay another 1000 in monthly interest so may as well bite the bullet.
My bank quoted me and will not include the 10% I am allowed to over pay, effectively charging me 5% on all the balance. Its a small amount of money, but why throw it away as I feel I should be allowed to pay off the mortgage by paying the sum owed plus 5% interest on 90% of the balance as I am allowed to overpay by 10% before being charged the 5%. 
The call centre was not in England and after frustrating me with not being able to understand what I was saying, I now have to wait for them to post me it in writing in 7-10 days, costing me up to £30 in interest.

I know its just a few quid, but its all principles. what would you all do?

Thrugelmir

The ERC will be based on the balance owing at the date of quotation/redemption. That's a contractual arrangement between you and the lender.  Overpay by as much as you able as soon as you able. In April you can discharge the mortgage fully after making the maximum permissable overpayment.