Mortgage Over-payments and Early Penalties

m4rtyboy

Hi, I know all the rules about early redemption penalties but cant find an answer to my specific question.

I took out a 5 year fixed rate and have been allowed to overpay by 10% per year and I have kept my contractual mortgage payment the same.  

Therefore this means my mortgage will end before the 5 year fixed term is up.  As I have not done anything wrong or broken any rules, will I still get charged an early repayment penalty or will the mortgage company reassess my monthly payment and reduce it to match the original term nearer the time?  I have about 2 1/2 years to go

Thanks

Jono111

Your 5 year fix period may end but your mortgage will continue on SVR for the rest of the 20? year term minus the time the overpayment has reduced it by.
Unless you switch it to another 

BarelySentientAI

m4rtyboy said:

Therefore this means my mortgage will end before the 5 year fixed term is up.  As I have not done anything wrong or broken any rules, will I still get charged an early repayment penalty or will the mortgage company reassess my monthly payment and reduce it to match the original term nearer the time?  I have about 2 1/2 years to go

No and no.

If they've let you keep the same monthly payments, then your mortgage will be paid off in 2 1/2 years without any extra fees.

If they do change the monthly payments, ask for them to be put back.