TSB mortgage overpayment (How to)

In this brief guide we will discuss the TSB mortgage overpayment, using a mortgage management platform to ensure you never overpay on your mortgage and always  know when to overpay to save you money..

TSB mortgage overpayment

You can make a TSB mortgage overpayment if you want to reduce your mortgage balance and reduce your monthly mortgage repayments by filling in the regular overpayment request form and posting it back to TSB .

What happens when you make a mortgage overpayment?

  • reduce the amount of interest you pay
  • reduce the amount you owe
  • be mortgage-free sooner
  • You may be charged an early repayment fee

If you are considering making a TSB mortgage overpayment then you should ensure making a  TSB mortgage overpayment won’t incur you any early repayment charges or fees due to TSB having a maximum overpayment amount or limit per year.

This means you may have to pay a fee if you make a TSB mortgage overpayment which goes beyond your allowance.  

 You can check your key facts illustration document which you should have received before you took on your TSB mortgage.

The key facts illustration document given to you by TSB should contain all the information you need about making a TSB mortgage overpayment, any fees and limits in place.

TSB says you can overpay up to 10% of the outstanding balance each calendar year (January to December).

TSB says there are two makes to make a mortgage overpayment.:

Specify an extra amount you want to pay regularly each month

Make a one-off, lump-sum payment

Regular mortgage overpayments

TSB says “Where interest is calculated on a daily basis, your balance is reduced following every payment so the interest you’re charged will go down. However we won’t recalculate the monthly payment each time, we’ll wait until the next time there’s some other reason for recalculating your monthly payment, such as a rate change. If you’re not sure whether your mortgage is on daily interest, please contact us.”


One-off lump sums

TSB says “You can pay part of your mortgage whenever you want. They are known as lump-sum overpayments. When you make a payment, your mortgage balance will be reduced on the day we receive the money, and you’ll start to be charged less interest. Then, because your balance is lower, you can either:

Keep paying your current monthly payment so that you repay your mortgage sooner. However, when we next re-calculate your monthly payment, for example at an interest rate change, we will set the new monthly payment to a level that will repay your mortgage over the current mortgage term. Or

Ask us to re-calculate your monthly payment immediately, so that you get to reduce your monthly payments but still repay your loan by the end of the current mortgage term. Or

If your mortgage is set up on a repayment basis, you can apply to change the remaining term. If you do this, you will need to speak to one of our Mortgage Advisors who will check that you can afford the monthly payments over the new term and advise you if this is right for you.

If you make a lump-sum overpayment, it can’t normally be refunded at a later date.”

Source- TSB

Contact TSB

If you are still unsure if you want to make your TSB mortgage overpayment then you should contact TSB on 0800 056 1088 to discuss this.

You can ask them the questions below:

  • Are there any fees for making an overpayment on my TSB mortgage?
  • Do I have any annual limits on how much I can overpay on my TSB mortgage?
  • How do I overpay my TSB mortgage?
  • When will my TSB mortgage overpayment be reflected on my mortgage account?
  • How much interest will I save after making my TSB mortgage overpayment?
  • What will my new monthly mortgage repayments be after making my new TSB mortgage overpayment?
  • Do I have to change my direct debit to my new mortgage repayment or will TSB cancel my current direct debit and issue a new one?
  • What will my mortgage balance be after making my TSB mortgage overpayment?
  • When will be the best time to make my TSB mortgage overpayment for maximum interest savings? The interest could be calculated Daily, monthly, quarterly or annually.

Mortgage overpayment calculator

As you can appreciate, some of the questions above are complicated and the person on the phone may not be able to give you all the answers you want. A mortgage overpayment calculator may be able to help you figure out how much you could potentially save in mortgage interest repayments by overpaying your TSB mortgage.

The issue here when considering whether to make a mortgage overpayment is that there really isn’t any tool which lets you know the answers to the questions above so you can make a decision on how much your mortgage overpayment is based on how much interest you may be able to save or when the best time to make your mortgage overpayment would be to save the most interest.

Managing your mortgage

As a mortgage holder managing your mortgage is one of the key things you will need to do to ensure you have a balanced financial wellbeing. Managing Your Mortgage doesn’t mean getting an excel sheet and trying to work out how much you owe your mortgage lender, what the mortgage balance is and how long it will take for you to repay the mortgage and be mortgage-free.

Managing your mortgage should be a passive thing. There is so much technology available now that you should be able to easily manage your mortgage with very little work.

So what does managing your mortgage mean?

Managing your mortgage means knowing all the key facts about yourmortgage in an easy to view straightforward medium. 

This means knowing when your next monthly mortgage repayment comes out, how much you pay each month, what your TSB mortgage balance is, when your TSB mortgage is due to be paid off, how much you can save by overpaying your mortgage and how much you will need to overpay your TSB mortgage by, how much interest your TSB mortgage costs you each month and each year, how much equity you have in your property,

 if you are eligible for a remortgage, what mortgage lenders may be willing to lend to you and how much you could save by remortgaging.

This is what mortgage management means.

In this brief guide we discussed the TSB mortgage overpayment. If you have any questions then please let us know below.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.