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Please throw some insight into this

asking for a friend of mine

she's with A & L for the mortgage for her home and this just near the end of the first year. According to mortgage offer, she could pay upto a max of 10% without incuring a penalty every January until the fixed tie is over.
does this 10% go off the principal mortgage value or just as SOME INTEREST payments for the following years?
any advice would be appreciated

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    Many lenders offer a choice if you make a lump sum payment - reduce the term or the mortgage, or reduce monthly payments. In both cases, the lump sum payment is taken off the mortgage principle, rather than any interest for future years.
    "You were only supposed to blow the bl**dy doors off!!"
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