Help on overpayments please to be mortgage free asap

Hi there, I’d like to overpay my mortgage by the maximum allowed but I don’t understand the wording. 

If I can OVERPAY 10% does that mean I can pay 10% over and above my agreed mortgage payments please? 

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  • Emsabobs
    Emsabobs Posts: 10
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    Lots more detail to add but kind of need to know on this first before I can plan how many years it will take. Thank you 
  • BikingBud
    BikingBud Posts: 1,648
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    You need to check the Ts&Cs they might say 10% of outstanding balance per calendar year, or similar.
    Mortgage: £200,000 (Sep 2021)                                      Initial MF date: Sep 2031 

    Int Rate:
    1.19% fixed until Nov 2026 (8.5% follow on rate?)
    Cap+Int Repaid: £65100 (32%)  £80,704 (40%) £82468 (40.48%)£89507 (43%) £91267 (44.7%) £98,309 (48.02%)

    Target MF date: Nov 2026  Current MF date: Dec 2029,  Nov 2029, Apr 2029, May 2029                                    
    Target Int Saving: £25,561 Current Int Saved: £12,350,   £13,421,  £16,991, £17,989, £18,699, £20,495

    Overpayments suspended and surplus cash currently being diverted to high interest savings.
  • Emsabobs
    Emsabobs Posts: 10
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    Thank you.

    It’s hard to explain what I mean but I just wondered if it’s usually 10% on top of my mortgage payments or 10% including them. 
    So if my mortgage is £100,000 and I pay £500 a month as my fixed mortgage payment, can I over pay £10,000 ON TOP OF my £6000 a year mortgage payments? 
  • BikingBud
    BikingBud Posts: 1,648
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    Yes

    I would say if you start with 100k you can pay off 10k as overpayment and then 6k as 12*£500 and then next year £8400 and 12*£500. Those early lump sums smash into the total interest payable but also consider if saving might be the better option.

    But check your agreement to see if it is calendar or mortgage anniversary.
    Mortgage: £200,000 (Sep 2021)                                      Initial MF date: Sep 2031 

    Int Rate:
    1.19% fixed until Nov 2026 (8.5% follow on rate?)
    Cap+Int Repaid: £65100 (32%)  £80,704 (40%) £82468 (40.48%)£89507 (43%) £91267 (44.7%) £98,309 (48.02%)

    Target MF date: Nov 2026  Current MF date: Dec 2029,  Nov 2029, Apr 2029, May 2029                                    
    Target Int Saving: £25,561 Current Int Saved: £12,350,   £13,421,  £16,991, £17,989, £18,699, £20,495

    Overpayments suspended and surplus cash currently being diverted to high interest savings.
  • Emsabobs
    Emsabobs Posts: 10
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    edited 19 March 2023 at 12:47AM
    Thank you very much. I will do. 

    Edit - I’m planning on paying any extra as overpayments rather than a lump sum. 
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