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Santander UK mortgage borrowers make £750m in overpayments in Q1

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  • 18/05/2023
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Santander UK mortgage borrowers make £750m in overpayments in Q1
Santander UK’s mortgage borrowers overpaid £750m on their loans during the first three months of the year at a higher rate than last year.

Figures from the lender show that this was a third higher than the overpayments made over the same period in 2022, and there was a nine per cent increase in the number of customers making higher monthly repayments. 

In the first three months of the year, the bank saw nearly 200,000 borrowers make overpayments. 

Santander allows its borrowers to make overpayments starting from £10 a month or lump sums of up to 10 per cent of the outstanding mortgage balance each year. 

The lender noted that as rates rose since October last year, overpayments could open its borrowers up to lower rates when remortgaging, if they lower their loan to value (LTV). 

This can also reduce the term of the mortgage. 

Graham Sellar, head of business development, mortgages at Santander said it had “never been easier” for its borrowers to make overpayments, as the option is available on the app, through online banking or over the phone. 

He added: “Overpaying can not only save money in the long term but also help secure a better interest rate when remortgaging and reduce the term of an existing mortgage. Customers can use the overpayment calculator on Santander’s website to see how they could benefit from overpaying.” 

In its results for Q1, the lender revealed that its mortgage borrowers were in a fairly stable position with just a small rise in the level of arrears from 0.62 per cent of its book in Q4 2022 to 0.64 per cent the next quarter. 

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