Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jangle
    • By jangle 19th Oct 19, 12:12 PM
    • 3Posts
    • 3Thanks
    jangle
    penalties if you overpay over 10%?
    • #1
    • 19th Oct 19, 12:12 PM
    penalties if you overpay over 10%? 19th Oct 19 at 12:12 PM
    hello - anyone know how much the Halifax charges if you overpay more than the 10%?
    I've paid off a sub account of my mortgage - and now just have £39K on interest-only terms, at 3.34% until April 2021.
    I called Halifax to confirm figures but they said one figure then another. And refused to write to confirm. I'm worried about penalties if we inadvertently pay more than the allowed 10%. thanks
Page 1
    • Thrugelmir
    • By Thrugelmir 19th Oct 19, 12:27 PM
    • 65,313 Posts
    • 57,497 Thanks
    Thrugelmir
    • #2
    • 19th Oct 19, 12:27 PM
    • #2
    • 19th Oct 19, 12:27 PM
    Read your mortgage product documentation to ascertain the penalties.

    Perhaps an easier way of approaching this. Is if you were to reduce the balance by 9% on an annual basis. Then you'd incur no penalties.

    Any excess funds that you have. Leave in a savings account until 2021. When the fixed term has ended.
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • A Frayed Knot
    • By A Frayed Knot 19th Oct 19, 12:28 PM
    • 2,938 Posts
    • 13,021 Thanks
    A Frayed Knot
    • #3
    • 19th Oct 19, 12:28 PM
    • #3
    • 19th Oct 19, 12:28 PM
    Not sure, how much, but it will tell you on your mortgage agreement.

    I also had a sub account (no interest added to it) but they still only allowed the
    10% overpayment on it each year if I remember right, along with 10% onmy main mortgage amount.

    With your being interest only, it may be different, but I wouldn't ask Halifax in branch, as
    I found out they have no clue when it comes to asking questions about your Mortgage.

    Found the best route was to phone the main mortgage centre about queries like that, although
    I ended up o/p too much with them telling me the wrong amount I could still o/p
    then ended up with a letter stating - I had o/p too much but on this occasion they will
    waiver the excess fee seeing as how it was such a small sum (That should have
    read, because we told you the wrong amount you could still o/p, you have now o/p too much)

    Good luck.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18 Now a Part Timer from 27.10.19
    MF March 2030Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • jangle
    • By jangle 19th Oct 19, 1:13 PM
    • 3 Posts
    • 3 Thanks
    jangle
    • #4
    • 19th Oct 19, 1:13 PM
    • #4
    • 19th Oct 19, 1:13 PM
    thanks Frayed Knot. Very similar situation, I don't trust the varying figures given by Halifax over the phone & they refuse to confirm in writing. Good to know a fee waiver is possible.
    I've read that Halifax ERC (early redemption charges) are about 1.3-0.8% and levied on the overpayments that exceed 10%.
    thanks for tip about branches being unhelpful - that saves a lot of bother ! :-)
    • A Frayed Knot
    • By A Frayed Knot 19th Oct 19, 1:37 PM
    • 2,938 Posts
    • 13,021 Thanks
    A Frayed Knot
    • #5
    • 19th Oct 19, 1:37 PM
    • #5
    • 19th Oct 19, 1:37 PM
    No bother, you could also ask your mortgage adviser, mine was exceptional when it came to o/paying and re-mortgaging, could say we were on the same page.

    Another fantastic tip he told me was that I could o/p 10% of my mortgage from 1st Jan on the
    year my fixed rate was finishing, but when I went to remortgage (in the same year) I had another allowance of 10% before the year end - which meant ending up with 2 x 10% allowances albeit the 10% was of the total at the beginning of the year and the total I re-mortgaged for
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18 Now a Part Timer from 27.10.19
    MF March 2030Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • jangle
    • By jangle 19th Oct 19, 1:51 PM
    • 3 Posts
    • 3 Thanks
    jangle
    • #6
    • 19th Oct 19, 1:51 PM
    • #6
    • 19th Oct 19, 1:51 PM
    Thanks - top tip about using the year's 10% in final furlong of the fix, then remortgaging ! :-)
    • A Frayed Knot
    • By A Frayed Knot 19th Oct 19, 7:28 PM
    • 2,938 Posts
    • 13,021 Thanks
    A Frayed Knot
    • #7
    • 19th Oct 19, 7:28 PM
    • #7
    • 19th Oct 19, 7:28 PM
    You are in a much better position than me, my fixed mortgage finished end of Oct/Nov which meant I had 10% till then. Then 10% after Nov which gave me a month to muster all cash I could,
    as didn't want to lose a 10% allowance, so savings were used, then replaced in the following months,
    then back to o/payments.

    Hope you are following this ok
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18 Now a Part Timer from 27.10.19
    MF March 2030Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • longway2go
    • By longway2go 20th Oct 19, 9:37 PM
    • 117 Posts
    • 280 Thanks
    longway2go
    • #8
    • 20th Oct 19, 9:37 PM
    • #8
    • 20th Oct 19, 9:37 PM
    I am with a different lender but each time I make an OP I get a letter confirming it and the amount of OP I can still make for the year. Perhaps make a small op and see if you get the figures confirmed on a letter?
    Mortgage - 161K

    Overpayments to commence when mat leave finishes. Making a better life for our children 😁

    • cat04
    • By cat04 21st Oct 19, 2:16 PM
    • 633 Posts
    • 2,682 Thanks
    cat04
    • #9
    • 21st Oct 19, 2:16 PM
    • #9
    • 21st Oct 19, 2:16 PM
    I've had a mortgage with Halifax since 2010 and have never received any kind of communication regarding what OPs I've made or what else I can pay within the 10% allowance. I've rounded my DD up to the next £100, plus try and make an OP equalling the monthly interest amount each month.

    I've never been near that 10% limit so not sure if they'd give a warning if you got too close. I've got a feeling that it it's 10% from the balance at the start of the year but I could be wrong.
    Extra savings aim for 2020 £4,000 £0/£4,000
    Original MF date Feb 2025. Currently Feb 2030 Aiming for Jan 2025
    Mortgage at 10/19 - £47,200 11/19 - £46,615
    My girls keep me going
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

133Posts Today

2,072Users online

Martin's Twitter