Hsbc mortgage overpayment allowance adonis10

#1
The annual overpayment allowance is calculated as a percentage of the amount drawn down for the first year of the mortgage. The allowance is recalculated annually for each year when an ERC applies on the anniversary of the date of drawdown (or following a switch to a new mortgage that has an ERC) on the outstanding balance of the mortgage."





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On the particular product I am considering, there is an overpayment allowance of up to 10%.. Does this mean 10% of the loan at the start of the year in question, per the above? Seems quite a lot.

#3
That's correct - the 10% is calculated from the mortgage opening balance for the first year - and then it's recalculated as 10% of the current outstanding mortgage balance as at the start of each new 12 month period after that.

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