NatWest annual over payment allowance

ElwoodBlues

For the last few years, NatWest have been sending me an overpayment allowance statement, and the annual period has been from 1st Oct to 30th Sept the following year. Just noticed that this year's is only for 3 months - 1st Oct to 31st Dec 2023. My current fix ends on 31st December, so I guess that's probably why.

I've signed up for another fixed rate term to follow on. But what happens to the overpayment allowance? Do they recalculate it based on the loan balance at 1st Jan 2024, and then the annual period runs for 12 months from then (i.e. calendar year), or does the current overpayment allowance stand, until 30th Sept 2024?

It's a minor thing, but I'm running the numbers to decide on a 2yr vs 5yr fixed term, and overpayment allowance is a factor for me.

amnblog

You can overpay a maximum of 20% of your outstanding mortgage balance in each 12 month period – commencing on completion of your mortgage and continuing from each anniversary of that date until the end date of the rate – without incurring an early repayment charge.

If your mortgage is made up of more than one part you can overpay up to a maximum of 20% of the outstanding balance of each part.