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Isn't the 3% a charge for early repayment of the whole mortgage and the 10% the amount you can pay as an over payment each year of the original mortgage ?
Mortgage = 100000 so 3ooo (3%) to pay the whole thing off.
Mortgage = 100000 so 10000 (10%) you can overpay each year to reduce the mortgage balance.
not4sale-
Yeah, again I was overthinking it. Broker just came back and said, nah.
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Yes, that's what he's getting checked out.
So if you wanted to pay off 100,000 you'd pay:-
10,000 off with no repayment charge, leaving 90,000, and then pay 3% of the 90,000. Giving a total of 102,700.
Rather than 3% of the whole 100,000 which would mean a total of 103,000.
stevo_com
Greenbank
I have a question out to our broker about the early repayment charge.
Currently, it is 3%. But, we are allowed to overpay by 10% each year. So, is that 3% calculated against the whole balance, or 90% of the balance, seeing as we should be able to repay 10% of it without a charge?
Would make about £580 difference. Which is not much in the grand scheme of things. But could be a room getting decorated, or a couple of appliances.