Martin Lewis MSE settles the debate on whether it's worth overpaying your mortgage Several major high street lenders including Natwest, HSBC, and TSB have cut mortgage rates, meaning homeowners coming to the end of their fix term could lock in around 4 per cent.
However, staying on an SVR rate isn't usually the cheapest way to pay back your mortgage, so you might be better off changing to a Discounted Variable Rate or Fixed Rate Mortgage.
This is a drastic saving from earlier this year; in January 2024, the average five-year fixed rate was 5.55 per cent while the average two-year fixed-rate deal was at 5.93 per cent.
If you're on a standard variable rate (SVR) mortgage, it is likely you'll be able to overpay as much as you want without any issue (best to double check if you're on a tracker mortgage).
If you're on a fixed-term deal, it's likely you'll be allowed to pay 10 per cent of your mortgage balance as an overpayment every year - without being stung by penalties.
