Overpayment question??

kittenkicks

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

Edgeoftheburn

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

Thanks for this, will find out the specifics with my lender x