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It makes sense to me. I'd make the maximum overpayment possible, wait a day for that to go through, and then ask the mortgage company how much to pay off the rest.
They could only charge ERC on an amount other than the outstanding balance if the T&Cs said they could. There could, theoretically, be a clause in there to say "ERC is due on the outstanding balance and any overpayments made within 12 months of the early repayment." but I really doubt they'd have that anywhere.
Looking at my most recent mortgage statement (Santander) I can see that the "cost to pay off the mortgage now" figure takes into account the remaining overpayment allowance rather than a blanket application of the ERC across the whole outstanding sum.
Other mortgage providers may differ.
Greenbank-
I think the broker is taken to cost to repay directly from Halifax, which doesn't take into account any of my tight fisted ass-hatery
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Other mortgage providers may differ.
They do.
This is from my Nationwide statement -My original mortgage was for 87000 and every year I had an overpayment allowance of 8700.
stevo_com
not4sale
Trying to google for the scenario but not getting anything. I'm sure it is just a case of them saying, "nah, ERC on the full balance" but I'm wondering why nobody else seems to have thought of this. Am I peculiar? Does it make sense to anyone else?