THOUSANDS of NatWest customers could benefit after the high street bank announced a big change.
From early March, customers on fixed or tracker mortgages will be able to overpay more without being stung with an early repayment charge.
The charge is paid to lenders if you pay off a lump sum on a mortgage therefore reducing the amount you've borrowed.
NatWest is increasing its overpayment limit from 10% to 20% so customers will be able to clear more of their mortgage without having to pay out extra to the bank.
NatWest said it will be writing to customers who regularly overpay more than £500 a month or who clear between 8% to 10% of their balance each year to tell them they can pay more.
It comes after the average mortgage rate fell below 4% for the first time in months.
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How can I get the best mortgage deal?
A mortgage is a big investment, so you will want to save money on it where you can.
The first thing to consider is the interest rate.
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In most cases, the larger the deposit you lay down the lower rate you can get.
A positive change to your credit score or a boosted salary can help you get better rates too.
Fixed rates are usually cheaper than standard variable rate mortgages but that might not be the case now, so it's worth shopping around for the best deals.
You can use comparison websites like Uswitch.com or moneysupermarket.com.
Alternatively, you can try a mortgage broker.
They act as a middle man between the lender and your self and can help you find the best deal.
But you might have to pay them a fee for their service.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
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