Owning your own home

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not4sale in reply to @stevo_com

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.

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Greenbank in reply to @not4sale

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.

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stevo_com in reply to @Greenbank

You see, that's what I had hoped. Maybe my broker didn't understand the question. He just came back with "Its 3% charge on the day you redeem the full mortgage". I need to think of a tactful way of saying, "that doesn't answer my question".

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