Hi All,
I'm considering overpaying my mortgage with a lump sum but am restricted by a 10% limit per year. If I go over this I'll be hit with a hefty early repayment penalty so want to know details of how this option is worked out.
What date determines the balance that the 10% is calculated from? The date the mortgage was originally activated? Calendar year? Financial year?
If it is derived from the annual mortgage statement at the start of the year is it 'locked' until the next one? For example, if my Mortgage statement in Jan says my balance is £80,000 could I pay £7,999 in December and be safe from penalties?
Does the balnace update after each monthly payment, thus meaning that the 10% figure drops slightly every month?
Any help with this would be appreciated!
Mr O
I'm considering overpaying my mortgage with a lump sum but am restricted by a 10% limit per year. If I go over this I'll be hit with a hefty early repayment penalty so want to know details of how this option is worked out.
What date determines the balance that the 10% is calculated from? The date the mortgage was originally activated? Calendar year? Financial year?
If it is derived from the annual mortgage statement at the start of the year is it 'locked' until the next one? For example, if my Mortgage statement in Jan says my balance is £80,000 could I pay £7,999 in December and be safe from penalties?
Does the balnace update after each monthly payment, thus meaning that the 10% figure drops slightly every month?
Any help with this would be appreciated!
Mr O