Early Repayment Charges - Should They be Reduced by Amount You Are Allowed to Overpayment in a Year?

FCwheeze

With regard to Early Repayment Charges, I was wondering why these are not reduced by the amount you are allowed to over payment in a particular year?
For example -

If I have a mortgage for £100,000, with an Early Repayment Charge of 2% and if I wished to repay this early…ordinarily the charge would be £2,000.

If this mortgage allowed me to overpay 10% in any given year and assuming that I hadn’t previously made any overpayments then shouldn’t the outstanding mortgage on which the early repayment charge is applied be reduced by the amount I could overpay within the given year as repaying the mortgage in full is in effect an overpayment?

In this simple example £200 could be saved on the Early Repayment Charge?

blue_max_3

You won't have to work out the charge, the lender will do that for you.
In fact, you can pay off 10% and save the 2% of that amount at any time before redemption.
I did exactly that and they worked out the 10% based on the balance at the beginning of the year, so it was a larger amount than when I actually paid it off. Saved 100's for a phone call!