Overpayment Reserve

By Justin Whitelock

Founder of Mortgage London (a trading style of City Finance Brokers Limited, authorised and regulated by the Financial Conduct Authority, FCA No. 766295)

A feature on some mortgages where earlier overpayments build up a reserve that may later support flexibility, not standard across markets.

Related glossary terms

Stress Test

An affordability check that looks at whether the borrower could still afford the loan if interest rates rose, formally part of lender underwriting.

Consent to Let

Permission from residential mortgage lenders allowing temporary property rental without immediately converting to buy-to-let status, subject to conditions and time limits.

Mortgage Advance

The actual money released by the lender at completion, sent to the conveyancer to be used towards the purchase or refinance.

Asset-Based Mortgages & Lombard Lending

Asset-based mortgage is a broad label used for lending where the borrower’s assets play a major role in the credit decision instead of standard salary-led affordability alone. In UK practice, the phrase can refer to private-bank residential mortgages with asset-led underwriting, securities-backed Lombard facilities, or other asset-led structures. Despite the name, not every structure described