Mortgage overpayment

CarterUK73

Our mortgage allows us to overpay 10% of the outstanding balance every calendar year without any early repayment charge being applied. Pretty common, from what I read.

We were fortunate to be able to do this earlier this year (so using up our overpayment allowance) but now we are changing our mortgage with the same lender to a new product. Would I be able to overpay up to 10% of the outstanding mortgage on this new product in this calendar year? I’d have thought if we were changing lender and the mortgage conditions allow, we could. But with the same lender (Santander), I’ve tried searching but didn’t find a definitive answer.

Thrugelmir

I'd say not if you remain with the same lender, as the allowance is an annual one. 

Sistergold

If you have come to the end of your term and want to switch with same lender? Then possibly instead of switching online you talk to their adviser and they can then switch products for you with a new lower balance? You need to call them and see if that is possible as it will be a new product so maybe they will allow you to lower the balance by as much as you want first. Please let us know if you managed so we learn too. 

I am suggesting you call as when I switched I had the option to switch through appointment with lenders adviser where I could adjust the offered product and balance.,
Good luck 

getmore4less

Given rates have gone up you will probably want to wait to switch and not take advantage of any early switch offer..

Move to the follow on where ERC free payments can be made
overpay as much as you want
Switch to new product.

julicorn

Ask your lender, it'll depend on their policies. With Accord, we were able to do what you are describing (we'd paid the full 10% in January already, but when we switched to a new product in August, the OP allowance reset, meaning we were able to pay 10% of the new balance straight away without penalty).