mortgage overpay

[tali122]

does early repayment charges in mortgages apply to those who switch mortgages before end of term and also to those who STAY the term BUT overpay their mortgage?

[dzug]

There's no universal answer to this - it depends on the mortgage lender and their T&C.

Generally if you switch mortgages with the same lender they will waive the fee but don't rely on it. If you overpay there will be rules on how it's treated which will vary not only from lender to lender but to different mortgages with the same lender.

[Postdog]

The last answer is totally correct in that it depends on the lender. My last one only allowed me to pay a regular fixed amount each month that they dictated. Any extra, could, I suppose, have been paid, but only in lumps, and again, what they said I could. My new one allows me to overpay every payment, handy given that I have an endowment, and because of overpaying this way I am �3,000 in credit. Well, not in credit, because it doesn't work exactly that way, but it's there at the end of the term if I need it (and I probably will!) and if it was an ordinary capital mortgage, I'd finish it earlier.