Mortgage Overpayment Question

jumperabv3

soupy600 said:

Unless your mortgage payment is due soon and you want to take a mortgage break i would leave it and wait until it calms down a bit. If its about the over payment could you maybe ring your adviser that set it up for you?

I just did, they don't have this information....

soupy600

Ah sorry to hear that hopefully you can get it sorted soon

robatwork

Yes you can pay 10% in a year without penalty so that's £25,000 extra.
Not sure what the broker is misunderstanding, this is completely normal and has been the same in every fix I've had apart from the latest with FD where I can pay any lump sum as long as I don't clear the whole thing.

Err on the side of caution as if you go 1p over 10% they have every right to charge you £12.6k. 

Thrugelmir

jumperabv3 said:

Over 2 hours over the phone, I think I will just give up, it's abnormal to wait for so long over the phone.

Perfectly understandable in the the current crisis. As many people are seeking financial assistance, i.e. payment holidays. These enquiries aren't two minute calls. Likewise there maybe a degree of absentism due to school closures , health issues etc. These are far from normal times. 
You can overpay your mortgage have no concerns over that. In due course you'll be aware of the bank details in order to make them. 

jumperabv3

robatwork said:

Err on the side of caution as if you go 1p over 10% they have every right to charge you £12.6k. 

An update - after 2 hours and 40 minutes on the phone I had an answer from them, so apparently my Application number is the same as my mortgage account number - so that solved that problem. I have the account details to make a payment.

I've asked them about overpaying 1p over 10% - they said they won't charge £12.6k but instead they would charge the proportional amount in regards to that - as you can see it says in the table I posted in the very first post in this thread: 5% of the capital repaid. (i.e. of the amount you overpaid)

However can anyone else here please clarify who's right? as what rob-at-work said is quite worrying to a certain extent ... so if anyone else can share his/her opinion in regards to this specific issue - it would be appreciated.

Thrugelmir

The £12.6k ERC would be charged if you repaid the entire mortgage within the first year. The following years ERC's reflect the fact that the mortgage balance would have reduced. 

If you exceeded the limit by say £100 in anyone year you would be charged £5 in year one, reducing to £1 in year five. 
1p over the limit would incur no ERC. The ERC would commence as soon as the overpayment reaches a £1. 

jumperabv3

Thrugelmir said:

The £12.6k ERC would be charged if you repaid the entire mortgage within the first year. The following years ERC's reflect the fact that the mortgage balance would have reduced. 

If you exceeded the limit by say £100 in anyone year you would be charged £5 in year one, reducing to £1 in year five. 
1p over the limit would incur no ERC. The ERC would commence as soon as the overpayment reaches a £1. 

Thanks.