What happens if I overpay my mortgage by 10% but want to leave lender?

Rosie_eliz

I understand I can make overpayments up to 10% in the calendar year. I am due to remortgage next May and potentially will leave lender.
Is the 10% based on you being with the lender for the full 12 months? If I paid the 10% in January next year would I be subject to a charge for leaving in May?

grumbler

Are you sure it's calendar year?

amnblog

Presumably your early redemption charges run out in May so there will be no charges levied when you settle.

The 10% overpaid beforehand is within your annual limit.

Always check with your Lender as they do not all work that way.

Altior

Santander is the calendar year. The allowance is 10% of the cap balance as at 31st Dec of the preceding year.

GMSstockton

Most are calendar years if not everyone.  You can over pay be 10% now.  Then when your deal ends you are free to do a new deal with teh current lender OR move lenders.  You can then over pay by a further 10% then.  If you are tied in until May.  Look at the options in January for a new deal.   Depending on the current lender yo may get a product transfer early,  You can renew this deal before completion in May if rates drop further.  But make the 10% overpayment you can now and then review it.