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Overpaying 10% on a TSB mortgage.
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Coffeekup
Posts: 661 Forumite

I'm just over 2 years in on a 10 year fixed rate with TSB which some heavy fee's, for the first 5 year's decreasing by 1% year on year after that.
I started overpaying through bank transfer in the second half of last year, £1,300 in total so far in dribs and drabs. I've planned overpayments in a spreadsheet for the remainder of the term. If I stay on track I'll hit the 10% limit in 2023, which will be done by monthly overpayments. In 2024 I'll have enough saved to pay a 10% lump sum in the beginning of the year.
But reading the following thread, it has left me scratching my head about overpaying... https://forums.moneysavingexpert.com/discussion/6243673/confused-over-10-mortgage-overpayment#latest
I've read it twice and I'm still no better off.
As of yet my payments haven't changed, I'm presuming it's because what I haven't paid off is not that much. Am I correct?
If I do pay a 10% lump sum in 2024, ideally I'd like to keep my monthly payments (principal) the same, if TSB were to change my payments my choice would be to pay more per month from then on in.
When I do make bigger over payments, is it best to call them and make the payment over the phone than, doing it through bank transfer to stop confusion?.
I started overpaying through bank transfer in the second half of last year, £1,300 in total so far in dribs and drabs. I've planned overpayments in a spreadsheet for the remainder of the term. If I stay on track I'll hit the 10% limit in 2023, which will be done by monthly overpayments. In 2024 I'll have enough saved to pay a 10% lump sum in the beginning of the year.
But reading the following thread, it has left me scratching my head about overpaying... https://forums.moneysavingexpert.com/discussion/6243673/confused-over-10-mortgage-overpayment#latest
I've read it twice and I'm still no better off.
As of yet my payments haven't changed, I'm presuming it's because what I haven't paid off is not that much. Am I correct?
If I do pay a 10% lump sum in 2024, ideally I'd like to keep my monthly payments (principal) the same, if TSB were to change my payments my choice would be to pay more per month from then on in.
When I do make bigger over payments, is it best to call them and make the payment over the phone than, doing it through bank transfer to stop confusion?.
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Comments
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Not sure what you mean about hitting 10% limit in 2024? You’re allowed to make 10% overpayments each year.Your contracted payments won’t change until your 10 year fix ends regardless of any overpayments. At the end of your 10 year fix TSB will lower your payments and keep the term the same unless you ask them to change the term (checks will be required if you do this) or you can keep term sane and continue to overpay which will result in shortening the term anyway
Have a read of TSB website:
https://www.tsb.co.uk/mortgages/existing-customers/making-extra-payments/MFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5000 -
Coffeekup said:
As of yet my payments haven't changed, I'm presuming it's because what I haven't paid off is not that much. Am I correct?
The lender will not automatically change your direct debit in any event. Systems aren't built that way.0 -
Thrugelmir said:Coffeekup said:
As of yet my payments haven't changed, I'm presuming it's because what I haven't paid off is not that much. Am I correct?
The lender will not automatically change your direct debit in any event. Systems aren't built that way.1 -
getmore4less said:Thrugelmir said:Coffeekup said:
As of yet my payments haven't changed, I'm presuming it's because what I haven't paid off is not that much. Am I correct?
The lender will not automatically change your direct debit in any event. Systems aren't built that way.0 -
Check that link to how TSB deal with overpayments.
I think you can structure overpayments to keep payment the same
Even if you can't the payment reducing has a relatively small effect over short term but you have that long fix, not crunched the numbers over 6 more years with annual reset and a full 10%
Depends on amount rate and full term.
Keep an eye on ditch your fix is LTV is good and your rate high.
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getmore4less said:Check that link to how TSB deal with overpayments.
I think you can structure overpayments to keep payment the same
Even if you can't the payment reducing has a relatively small effect over short term but you have that long fix, not crunched the numbers over 6 more years with annual reset and a full 10%
Depends on amount rate and full term.
Keep an eye on ditch your fix is LTV is good and your rate high.
Tsb is 10% of the year's balance on 1st of January. I don't want to pay and find out my principal payments are going down. As my overall goal is to get rid of the thing, and limit the interest. If I stick to my plan I'll be paying 15,000 in interest over the 10 year's.0 -
Coffeekup said:My rate is relatively low, 2.54%, I could have got a better mortgage with a company like nationwide who let u pay 10% of the mortgage when u took it out every year.
Tsb is 10% of the year's balance on 1st of January. I don't want to pay and find out my principal payments are going down. As my overall goal is to get rid of the thing, and limit the interest. If I stick to my plan I'll be paying 15,000 in interest over the 10 year's.If you do want to increase your monthly allowance, you can ask them if they will do this - if they do, they will do an affordability check, so best to keep outgoings low for three months before etc - all the things that people are advised to do before a mortgage application. A lot of people on the site will get worried about increasing the monthly payment and it is something to consider carefully as you might regret it if your income reduces. However if you are easily hitting the 10% overpayment limit, you're clearing your monthly payment by miles and really it's no different to applying for a mortgage anyway - you tie in to a monthly payment at that point then. I did it (while in my fix) last year because I was saving more than the 10%, so it's possible to do it in the fixed period - I just couldn't bring the end of the term any further forward than the end of the fixed period.Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.0 -
Coffeekup said:getmore4less said:Check that link to how TSB deal with overpayments.
I think you can structure overpayments to keep payment the same
Even if you can't the payment reducing has a relatively small effect over short term but you have that long fix, not crunched the numbers over 6 more years with annual reset and a full 10%
Depends on amount rate and full term.
Keep an eye on ditch your fix is LTV is good and your rate high.
Tsb is 10% of the year's balance on 1st of January. I don't want to pay and find out my principal payments are going down. As my overall goal is to get rid of the thing, and limit the interest. If I stick to my plan I'll be paying 15,000 in interest over the 10 year's.
You are only 2 years into a 10 year fix; so you either overpay every month as much as you can as long as you don’t go over the overpayment limit of 10% then see how much mortgage is remaining at the end of the 10 year fix. Use this calculator to see what a difference overpayments make: https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/
OR
You run the calculations through ditch the fix to see if you could get a lower interest rate but I would say you have hefty ERC on a 10 year fix?MFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5000 -
2.54Coffeekup said:getmore4less said:Check that link to how TSB deal with overpayments.
I think you can structure overpayments to keep payment the same
Even if you can't the payment reducing has a relatively small effect over short term but you have that long fix, not crunched the numbers over 6 more years with annual reset and a full 10%
Depends on amount rate and full term.
Keep an eye on ditch your fix is LTV is good and your rate high.
Tsb is 10% of the year's balance on 1st of January. I don't want to pay and find out my principal payments are going down. As my overall goal is to get rid of the thing, and limit the interest. If I stick to my plan I'll be paying 15,000 in interest over the 10 year's.
as an example
£100k 2.54% over 21 years £512.43pm with a 10% overpayment at the beginning of each year
Interest over the 10 years
~£20,500 no overpayments
~£12,500 10% with recalculate payment
~£10,500 10% payment the same
The difference in interest between the recalculated payment after the 10% and keeping the payment the same is around £2000 over the 10 years, yours will be around 5/6 years so proportionally less
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