The Martin Lewis Podcast Should you overpay your mortgage or save – and how to make it work? And no ‘no standing charges’ tariffs
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Feb 5, 2026 They debate whether to use savings to overpay a mortgage or keep cash, covering penalties, 10% overpayment rules and timing. They react to the Bank of England holding rates at 3.75% and what the split vote suggests. They unpack Ofgem’s diluted no-standing-charge promise and why low-usage customers may lose out. Practical tips cover emergency funds, offset mortgages and when investing might beat overpaying.
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Standing Charge Promise Diluted And Delayed
- Ofgem's promised low/no standing charge tariffs were diluted into optional commercial offerings.
- That leaves vulnerable low-usage customers unlikely to switch and still stuck paying standing charges.
Small Overpayments Yield Big Savings
- Overpaying reduces total interest and shortens the mortgage term significantly.
- Small regular overpayments compound to large lifetime interest savings and earlier mortgage freedom.
Listener Cleared Mortgage Early
- Deb redeemed her mortgage 11 years early by regular overpayments and felt secure at 57.
- She credits consistent overpayments for enabling earlier retirement planning and peace of mind.