Maximum allowed repayment calculator?

knightstyle

Is there an on-line calculator to work out how much maximum I can pay off each year?  Terms say 10% each year but I am not sure if this is on the balance at the beginning or end of the year. I want to increase my payments each month to pay back the maximum i can without penalty.

Thrugelmir

Check your lenders criteria on line. Normally it would be 10% of the balance as at the annual statement date. 

chanz4

If halifax its the start of the year and each sub account

Petriix

Several lenders allow 10% of the original balance. You need to check your specific terms and conditions and possibly ask your lender for written clarification of exactly how amounts and dates are calculated.

knightstyle

Thanks, it is Leeds and it seems to be 10% of the end of year statement.  So still looking for an easy calculator for monthly payments or I will be on the calculator for a long time?

Thrugelmir

What are you trying to calculate?  

MovingForwards

Outstanding balance - 90% ÷ 12 = amount you can overpay each month

Or

Outstanding balance - 90% = lump-sum amount you can pay.

knightstyle

Yes thanks but does that mean I have to pay the same amount each month for each year?
 Will the maximum amount decrease each month or year?
Surely the amount I can pay will be dependant on how much interest I pay each month as well?

ACG

You are usually allowed to overpay 10% per year. So you could pay it all in one month or over 12 months.
If your balance was £100k, that would mean you can overpay by £10k in a year, which could be £10k as a lump sum or £800ish as month or anything in between. 

But guess who the best people to ask are...
If we get it wrong, you could incur costs. If they give you wrong information you wont. 

MovingForwards

Yes thanks but does that mean I have to pay the same amount each month for each year?
- no, that's the total amount you can pay for that particular year, until your new annual statement comes out, then you recalculate it and start over again.

 Will the maximum amount decrease each month or year?
- each statement year as it's based on the outstanding balance when your statement is produced.

Surely the amount I can pay will be dependant on how much interest I pay each month as well?
- no, your interest is separate and not included in your 10%

Have you read the T&C's which came with your mortgage offer?

Petriix

The overpayment allowance is entirely separate from your regular payments (both the interest and capital parts) so, if you regularly pay £600 per month on your £100,000 mortgage, you can still overpay £10,000 in the year on top of the monthly payments. The overpayment limit also only exists during a fixed or promotional rate period. You can overpay whatever you like at the end of the fix. If you've fixed for two years, you can save up a lump and pay that off at the time of remortgaging to a new lender or before you move on to a new fix with your current lender.