Halifax mortgage overpayment allowance - how does it work

jamielutz1987

This is how the 10% annual overpayment allowance is described on my Halifax offer -

I'm confused by what the "calender year" means in the guidance. If my 2 year fix starts on 1-Aug-2020 and ends on 31-July-2022, does that mean -
 I get 2 periods where I can overpay 10% penalty free - Aug 2020 to July 2021 and Aug 2021 to July 2022
OR
I get 3 periods, Aug-Dec 2020, 2021 and Jan-July 2022?

My money would be on the 2 periods, but it would be great if someone with a Halifax mortgage could confirm.

Thanks!

cooltt

jamielutz1987 said:

This is how the 10% annual overpayment allowance is described on my Halifax offer -

I'm confused by what the "calender year" means in the guidance. If my 2 year fix starts on 1-Aug-2020 and ends on 31-July-2022, does that mean -
 I get 2 periods where I can overpay 10% penalty free - Aug 2020 to July 2021 and Aug 2021 to July 2022
OR
I get 3 periods, Aug-Dec 2020, 2021 and Jan-July 2022?

My money would be on the 2 periods, but it would be great if someone with a Halifax mortgage could confirm.

Thanks!

Hello
A calendar year means a calendar year and they have precisely pointed out what they mean by it in the T&C's "as of 1st Jan". 
Doesn't matter which month of the year the mortgage starts, 10% of a balance would be the same amount as it if did start on the first of 1st Jan. 

jamielutz1987

cooltt said: 

jamielutz1987 said:

This is how the 10% annual overpayment allowance is described on my Halifax offer -

I'm confused by what the "calender year" means in the guidance. If my 2 year fix starts on 1-Aug-2020 and ends on 31-July-2022, does that mean -
 I get 2 periods where I can overpay 10% penalty free - Aug 2020 to July 2021 and Aug 2021 to July 2022
OR
I get 3 periods, Aug-Dec 2020, 2021 and Jan-July 2022?

My money would be on the 2 periods, but it would be great if someone with a Halifax mortgage could confirm.

Thanks!

Hello
A calendar year means a calendar year and they have precisely pointed out what they mean by it in the T&C's "as of 1st Jan". 
Doesn't matter which month of the year the mortgage starts, 10% of a balance would be the same amount as it if did start on the first of 1st Jan. 

@cooltt Sorry I don't understand what you mean. So will I have an overpayment allowance of 10% in 2020, 10% in 2021 and 10% in 2022?

julicorn

jamielutz1987 said:

cooltt said: 

jamielutz1987 said:

This is how the 10% annual overpayment allowance is described on my Halifax offer -

I'm confused by what the "calender year" means in the guidance. If my 2 year fix starts on 1-Aug-2020 and ends on 31-July-2022, does that mean -
 I get 2 periods where I can overpay 10% penalty free - Aug 2020 to July 2021 and Aug 2021 to July 2022
OR
I get 3 periods, Aug-Dec 2020, 2021 and Jan-July 2022?

My money would be on the 2 periods, but it would be great if someone with a Halifax mortgage could confirm.

Thanks!

Hello
A calendar year means a calendar year and they have precisely pointed out what they mean by it in the T&C's "as of 1st Jan". 
Doesn't matter which month of the year the mortgage starts, 10% of a balance would be the same amount as it if did start on the first of 1st Jan. 

@cooltt Sorry I don't understand what you mean. So will I have an overpayment allowance of 10% in 2020, 10% in 2021 and 10% in 2022?

Yes. In 2020, you can pay off 10% of the remaining balance on 1/1/2020, and then in 2021, you can pay off 10% again (but of the remaining balance as of 1/1/2021). You can also contact Halifax to ask what exactly your overpayment allowance for this year is. 

jamielutz1987

Amazing. Thanks @julicorn !

julicorn

Sorry, just re-read your original post @jamielutz1987 . It's been a long day already! You should have 3 OP periods:
2020: They should allow you to pay 10% of the mortgage balance as of 1/8/2020 (because that's when your deal starts)
2021: 10% of the balance on 1/1/21
2022: 10% of the balance on 1/1/22

For example, we took out a new 2-year fix with the same lender (Accord) we were with before last year, which meant that in 2019, we got 2 10% allowances (the first one for the fix that was running out, 10% of the balance on 1/1/19, and then the second one when our new fix started, so 10% of the balance on 2019). We didn't quite hit that 20%, but still made the most of it. I hope this helps, but if in doubt, just contact your lender