Overpayment question??

Hi all, can't seem to find an answer to this. Wondering if you smart folks could help 

If you have a mortgage of 100k, take out a fixed rate 5 year deal and utilise the 10% overpayment, is the overpayment amount recalculated each year? Or would it be 10% of the 100k for the 5 years? 

Thanks x
Saving Total 1st Jan 2017: £47,819.92 | 23rd Jan 2017: £49,611.38 | 28th Feb: £50,461.97 | March 2017 : £51,786.13 | April 2017: £53,251.52| May 2017: £54,219.71 | June 2017: £55,857.73 | Nov 2017: 53,375.46 Savings Goal: £100k:j £46,624.54 To go!

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  • Edgeoftheburn
    Edgeoftheburn Posts: 68
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    edited 22 June 2021 at 9:31PM
    Hi kittenkicks each lender has slightly different rules so best check before making any costly mistakes. Generally it is reset each year, some allow 10% of the original value others allow 10% of the balance at the start of each year, that can be a set point in the year or the anniversary of your loan again all lender dependant.
  • kittenkicks
    kittenkicks Posts: 29
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    Thanks for this, will find out the specifics with my lender x
    Saving Total 1st Jan 2017: £47,819.92 | 23rd Jan 2017: £49,611.38 | 28th Feb: £50,461.97 | March 2017 : £51,786.13 | April 2017: £53,251.52| May 2017: £54,219.71 | June 2017: £55,857.73 | Nov 2017: 53,375.46 Savings Goal: £100k:j £46,624.54 To go!
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