Mortgage overpayment loophole?

34 replies

RelativePitch · 03/10/2022 13:10

Just had a chat with HSBC to try and overpay our mortgage. We do have a 10% overpayment facility which we've never used. But she let me into a secret. Our mortgage statements run from the 22nd October to the 21st October every year. She told us we can overpay by any amount we like on the 21st October because it's considered a Zero Day. Has anybody heard of this? Can't find anything about it on the Internet. So we can throw any sum of money we like at our mortgage on the 21st October and not be penalised. It used to be a bit of a secret, but they're now actively telling people to make the most of this loophole. Did anyone else know?

OP posts:

CapMarvel · 03/10/2022 16:39

I'd be absolutely fucking amazed if this was true.

Far, far more likely to be the min wage call centre staffer talking shit.

DogInATent · 03/10/2022 16:43

Shit people weren't told for 10 please Bob.

No, of course it's not true. Who'd be daft enough to believe that?

DrManhattan · 03/10/2022 16:45

I have heard of this. They didn't get charged a penalty but the money (overpayment) just went back to their current account.

vindaloopy · 03/10/2022 17:00

Singlebutmarried · 03/10/2022 16:21

Also double check the terms

some lenders are 10% of the original loan

others are 10% of the balance of the loan at the start of each ‘year’

Barclays also used to let you overpay 3x your monthly payment without ERC (but you’d have to check this is still the case as I’ve not asked about it recently)

This is a good loophole that few people seem to know about. My lender allows 10% capital repayments a year plus my monthly repayment can be up to £999 on top of my actual repayment amount. Together this allows you to overpay far more than the headline 10% over a whole year. If only I could afford to do that...

Wafflefudge · 03/10/2022 18:02

Which bank is that @vindaloopy
I'm with Halifax would be great if they allowed this.

Testina · 03/10/2022 18:22

I think it only applies if you are a Freeman of the Land 🤣

vindaloopy · 03/10/2022 18:27

Leeds building society. But give Halifax a call, you never know!

Original poster

RelativePitch · 05/10/2022 13:46

Fillow up. Raised a complaint with HSBC about the misinformation I was told. They called me back today and had listened to the recorded call and apologised profusely for what we'd been told and they have credited our account £100! Not only did they apologise for misinformation, but for the unprofessional language such as 'secret loophole'. We can pay any amount off our mortgage on the last day of our fixed term as PPs stated.

OP posts:

BornBlonde · 05/10/2022 22:52

That's good you got the right information

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