NatWest doubles overpayment allowance for mortgage customers

NatWest has increased the amount borrowers can overpay on their mortgage each year.

The bank announced that both new and existing NatWest mortgage customers are now able to make an overpayment of up to 20%, up from 10%, without incurring an early repayment charge. 

Overpayment allowances will renew annually on the anniversary of product draw down. This increase will apply to customers on fixed or tracker rate products.

How do customers make overpayments on a NatWest mortgage?

All NatWest customers need to do is head to Manage My Mortgage, choose “My Payments and Services" from the main menu, “Make a Payment”, then “Lumpsum overpayment” to see what their increased allowance is and other useful information.

Should you overpay on your mortgage?

There are more examples in the national press of homeowners doing more to pay off their mortgage early and reduce the interest they pay over the term.

The cost of living has increased, and many homeowners have less disposable income. However, for many borrowers who do not have another mortgage repayment vehicle, it is still worth overpaying if you can. It will make a big difference even if it's a minimal regular payment, especially over 10, 20 or 30 years. 

More lenders allow you to adjust your mortgage direct debit monthly through their apps. For example, Santander has a great app allowing borrowers to check their mortgage balance and adjust their monthly repayments. Other lenders like HSBC allow customers to make overpayments online.

Which other lenders allow more than 10% overpayments each year?

Most banks and building societies allow borrowers to overpay 10% per year without charge, although some lenders are more generous. Metro Bank allows up to 20% per year with a minimum of £500 each time. 

Bath Building Society and Digital Mortgages allow 20% overpayments yearly, while Suffolk Building Society allows 50% overpayments on all mortgage products calculated on the original loan amount. 

Mortgages without early repayment charges

If you plan to take a mortgage and pay it off over the shorter term, a mortgage without early repayment charges may be a good option. Many of these more flexible products are tracker rates.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within this article was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage