You wont be seen as overqualified, but most masters grads with no relevant experience will not be given more pay. Even if you do get more pay, the amount is only a few hundred. UK universities is really diverse, so in effect, they do look through your application first before throwing it out. Because for UK universities, there are 3 year honors programs and 4 years honors programs as well, which makes thinks a little bit more complicated. It also depends on relevency and your bachelors. Your masters might be from
LSE but if your bachelors was DL, they will scrutinise your masters to a larger extend. For example, there was once when there was an applicant with a UOL degree and
LSE masters. But his grades in
LSE were terrible, he literally just passed. Furthermore, his masters thesis wasnt at all impressive(according to my boss anyway). So although he went to
LSE for masters, he did badly, and that 1.5 year in
LSE probably did not add much value to him so my boss didnt even call him in for an interview.
But once again, we get lots of UK applicants too. When there are too many, we usually stick to ICL, UCL, KCL,
LSE, these are seen as equal to the local universities. Havent seen an edinburgh applicant but they would probably be in the same range. Manchester and Nottingham usually dont get a look, they're seen as a notch below. We got quite a few Manchester applicants last year and all of them got thrown out.
Masters grads really depends. If its a UK Masters + 3 year honors degree, we see it as equivalent to a 4 year honors degree. This same standard is applied by PEB(Professional Engineers Board).