Overpayments are a concession - how likely that will remain?

mademe

I am just about to complete on a 10 year fixed rate with Lloyds. It states in the t&cs that we can overpay by 10% without being subject to early repayment charges but that this is a concession which can be removed at any time. I searched and found that other banks have the same terms - Halifax, TSB and Bank of Scotland. I just wondered if anyone knew how likely this would remain as a concession, or what the circumstances would need to be for the concession to be removed? 

dimbo61

Once you enter into a contract it  is normally legally  binding. 
Most banks allow 10% max overpayment in a calendar  year but check with the lender.
Overpaying is a great way to reduce debt and clear the mortgage early.
Can't  see any of the banks changing this " concession " 
However we did have an Interest only BTL mortgage which did not allow any overpayment 

mademe

Thanks for your reply. Yes we have the ability to overpay on our mortgage now (with Skipton) but it's not listed as a concession. I see it appears to be more high street type banks which offer this as a concession. We can't overpay much at the moment but 10 years is a long time and I'm hoping the concession won't be removed.

chanz4

myn has been there for 9 years with them

dunstonh

Overpayments are not a contractual event.  Hence why they have the warning that they may not exist in the future.   However, overpayments were possible back in my mortgage adviser days in the early 90s.      There is no reason to see it ending.