Overpayments and early repayment charges

Exodi

beefturnmail said:

amnblog said:

beefturnmail said:

saajan_12 said:

The premise itself seems strange - what are the numbers involved ie starting mortgage size, starting mortgage term, current balance, allowed overpayment, etc. Usually with a 10% repayment allowed even if that's based on the starting not reducing balance, you'd only repay 50% plus the usual repayments within 5 years. 

It's a mortgage transfer from an existing Nationwide Mortgage.  Overpayment allowed without ERC is 10% of the original starting mortgage balance (which started some years ago), hence why full repayment will be less than 5 years, with maximum overpayment.

Presumably, you have changed rate since you first took the mortgage? When a new rate switch occurs, the 10% overpayment allowance is reset

I thought so too, but when I go in to the 'switch my mortgage' area through nationwide's manage my mortgage, it presents my with various options, some fixed, some trackers etc. - under more details the trackers say no overpayment limit and the fixed ones say 10% of the original mortgage amount and then give a figure based on that.   Maybe this will change once I actually proceed with the mortgage however?

No, they're saying your overpayment allowance resets (as in goes back to zero), not that the total overpayment allowance amount changes when you rate switch - effectively suggesting you could overpay 10% of original balance now, and then another 10% of the original balance the day after you switch.

At least that's my interpretation.