Early repayment charges on TSB

eddiejones

If you repay your mortgage (or more than 10% in any year) during the fixed rate period, an early repayment charge will apply. As a current concession you can repay up to 10% of the balance (as at 1 January) each year and the charge will not apply (unless you go on to repay or change the rest of the loan within the next six months). We may change or withdraw this concession on giving three months notice.
For amounts above 10%, the charge will be a percentage of the amount repaid and varies depending on how long you have left on your fixed rate, as shown in the tables below.

The wording on the website is above. Does this mean I can make an overpayment of 10% in a year? Or that my total repayment in a year is capped at 10% to avoid charge?

retepetsir

You can make overpayments up to 10% per year, anything over that they'll charge you extra for. 

anna42hmr

Basically the way my TSB mortgage works with OPs i can op in that year up to 10% of the balance at the start of the year.  This then resets the following January.  

So for example:

If a mortgage balance on 1 January 2020 was £80,000 on can OP 8K between 1 January 2020 and 31 December 2020.  

This then re-sets for the next year based on the new balance of the mortgage as at the 1 January 2021.  So as an example if the balance on 1 January 2021 has then dropped from to £70K (from the £80 K the year before), means that can OP £7K in year 2 (1 January 2021 and 31 December 2021) .  (i.e. in year 1 can OP up to £8K, year 2 up to £7K and so forth each year.  

eddiejones

anna42hmr said:

Basically the way my TSB mortgage works with OPs i can op in that year up to 10% of the balance at the start of the year.  This then resets the following January.  

So for example:

If a mortgage balance on 1 January 2020 was £80,000 on can OP 8K between 1 January 2020 and 31 December 2020.  

This then re-sets for the next year based on the new balance of the mortgage as at the 1 January 2021.  So as an example if the balance on 1 January 2021 has then dropped from to £70K (from the £80 K the year before), means that can OP £7K in year 2 (1 January 2021 and 31 December 2021) .  (i.e. in year 1 can OP up to £8K, year 2 up to £7K and so forth each year.  

Awesome, thanks 😁

anna42hmr

eddiejones said:

anna42hmr said:

Basically the way my TSB mortgage works with OPs i can op in that year up to 10% of the balance at the start of the year.  This then resets the following January.  

So for example:

If a mortgage balance on 1 January 2020 was £80,000 on can OP 8K between 1 January 2020 and 31 December 2020.  

This then re-sets for the next year based on the new balance of the mortgage as at the 1 January 2021.  So as an example if the balance on 1 January 2021 has then dropped from to £70K (from the £80 K the year before), means that can OP £7K in year 2 (1 January 2021 and 31 December 2021) .  (i.e. in year 1 can OP up to £8K, year 2 up to £7K and so forth each year.  

Awesome, thanks 😁

No problem, happy to help, i have been OP'ing my TSB mortgage since 2015 so its something i have to check each year.  I have my set up to take my direct debits at a higher amount than they need to be and then where possible pay a bit extra here and there.