I've been looking at mortgages online and understand that there can be up to a 5% penalty if you overpay by a given percentage over a year, but 5% of what? The overpayment above the given percentage?
So for example, if you can overpay by 16,000 a year, and pay 20,000, there's up to a 5% penalty on the 4,000?
Is that right?