What lenders allow more than 10% overpayments?

BoxerfanUK

As far as I know HSBC and Tesco allow 20% overpayments on some of their mortgage products but does anyone know any other lenders that do the same?

Reason I ask is that my overpayments have risen quite sharply but my current 10% limit is restricting me from paying off more to allow me to clear my mortgage even more quickly than I originally planned.

holly_hobby

How about an offset - several have unlimited overpayments (ie YBS), with no ERCs as long as you don't completely repay with any ERC period.

Speak to a broker

Holly x

BoxerfanUK

Hello Holly, I haven't considered an offset because I prefer to have my savings separate from my borrowings rather than all lumped into one, call me old fashioned :rotfl: but I just prefer it that way. Thanks for your reply anyway.

kingstreet

Overpayments are determined by the product, not by the lender.

A single lender may have products with no overpayment limit, 10%, sometimes more.

You need to establish the overall product features you are looking for and try to establish which lender has a product which meets all your needs.

BoxerfanUK

kingstreet wrote: »

Overpayments are determined by the product, not by the lender.

A single lender may have products with no overpayment limit, 10%, sometimes more.

You need to establish the overall product features you are looking for and try to establish which lender has a product which meets all your needs.

Hi thanks, yes I am trying to do that but most lenders that I've looked at only appear to offer 10% max to 'selected products' but a few offer more. I'm just trying to determine what lenders offer more and then I'll take a look to see whether any of their products would suit what I'm looking for. Ideally looking at a 2 or 3 year fix.

kingstreet

I suggest speaking to a whole market broker if you find the prospect of carrying out this research too onerous/daunting.

You are likely to find your interests best-served by opting for a penalty-free product where you can overpay as much as you want.

kingstreet

BoxerfanUK wrote: »

I haven't considered an offset because I prefer to have my savings separate from my borrowings rather than all lumped into one

You may then be paying tax on savings interest which could be saved by choosing the offset option.

With a typical offset mortgage costing 4% per annum, that equates to a gross rate of 5% to a basic rate taxpayer.

kkgree1

We have a tracker with Britannia which allows unlimited overpayments. As previously mentioned, it is product rather than the particular bank/building society which tends to dictate this. In our experience, we found that fixed rates rarely offered overpayment (10% at most).

dimbo61

Tracker deals often allow unlimited overpayments
Fixed rate deals sometimes allow 10% overpayments But if you have a £200/250K mortgage then £20/25K is a lot of money to overpay.
For me offset mortgages are brilliant as a great way to clear a mortgage quickly.

daveyjp

Samtander did have a fully flexible mortgage a few weeks ago.

leccyblue

First Direct allow unlimited overpayments on all of their mortgages, even inside fixed rate deals. Their rates are also competitive. I think there are ERCs for full repayment, but you can overpay as much as you like as long as you don't repay the full amount.