The high street bank says the move may lead to homebuyers getting “a better deal or reduce their monthly payment or term,” it tells brokers on its hub. 

It adds that, “clients can make an early repayment charge-free overpayment before you submit the product transfer request.  

“Doing this before could allow your client to get a better deal or reduce their monthly payment or term.  

“This won’t impact their early repayment charge-free overpayment allowance.” 

The lender adds that it “can only allow an early repayment charge-free overpayment with a product transfer on loans that are eligible to book a new deal.  

“If your client wants to make an overpayment to a loan or loans that aren’t eligible for a product transfer, they can do this in the normal way.” 

The bank says an ‘Overpayments with a product transfer’ tab can be found on its product transfers web page. 

Once the lender has processed the request, it will send an email telling brokers that their clients can make an overpayment. 

After the bank has processed the payment, it will email brokers to tell them when they can submit a client’s product transfer request.