Vernon Building Society has enhanced its discounted variable rate mortgage offering, now allowing borrowers to make capital repayments of up to 25% per year without incurring any early repayment charges (ERCs).
The overpayment allowance offers significantly more flexibility than the market norm of around 10%, offering borrowers greater freedom to reduce their mortgage balance faster and manage their finances more proactively.
Discounted variable mortgages typically offer lower interest rates than a lender’s standard variable rate (SVR) for a fixed period, making them an attractive option for those who want to benefit from lower repayments while retaining the ability to overpay.
The minimum loan size is £100,000, reduced to £50,000 for properties in Greater Manchester and Cheshire, where the mutual is based.
Brendan Crowshaw (pictured), head of mortgage and savings distribution at the Vernon, said: “Discounted variable rate mortgages are often overlooked in favour of fixed rate deals, but they can offer real value, particularly in an environment where interest rates are expected to fall. They are competitive, flexible and a smart choice for borrowers who want to make overpayments.
“Our 25% capital repayment allowance, without penalty, is very competitive and designed to help customers take greater control of their mortgage."
