Make an overpayment

How can I make an overpayment online?

You can pay extra in three ways. You’ll see how much you can pay in each instance. You may have to pay an ERC if your mortgage rate is fixed and you go over your allowance – see above.
 

1. Your hub

• You can pay up to £99,999 to each account that makes up your mortgage
• You must use a UK debit card from a bank account that’s in your own name or joint with someone else
• You can also choose:
• Which account you want to pay into
• To reduce your monthly mortgage payment or length of your mortgage. If you have an interest only mortgage you can only reduce your monthly payment
• See how much you can pay without paying an ERC, or how much your ERC might be
• The account you pay into will lock for up to seven days while your payment is being processed.

Log in or register for your hub today, to get started.
 

2. Our website

• You can pay up to £12,000, using the button near the bottom of this page
• We’ll spread the funds across your accounts if you have more than one, so you’re put in the best financial position. You must get in touch if you want them applied to a specific account
• Your funds will be used to reduce your monthly payment
• It can take up to five days for your payment to show on your account.

3. Your bank

• You can pay any amount from your bank account
• It can take up to five days for your payment to show on your account
• See below for more details.

How can I overpay from my bank account?

You can pay extra on your mortgage by:

• Standing Order. You can set this up to pay the same amount regularly
• Bank transfer i.e. BACS or CHAPS. You send the money yourself.

You can do this using:

• Your bank’s app,
• Their website, or
• By calling them.

What will I need to pay from by bank account?

• Our bank details. You can find these by logging in to your hub, then go to Tools and select How can I make an online payment? Having these details in your hub helps to keep your money and us safe from fraud
• Your mortgage account number. This in in your hub or on your Annual Mortgage Statement
• The postcode of the mortgaged property
• Your payment card.

As you’ll need to log into your hub to get our bank details, you might find it easier to just make the payment there. See point 1 above for more information.

Don’t forget:

• You must get in touch each time you make an overpayment from your bank. This makes sure we apply the funds quickly, so you pay less interest
• This won’t affect your credit score
• Get in touch if you use a screen reader, so we can help.

Can I pay by credit card?

You can pay by credit card using our website, but you should bear in mind:

• Your card company may charge you fees and interest for making the payment
• Once you make a payment, it can’t be refunded
• Using a credit card might lead to more debt.

Visit our help and support page if you’re struggling to pay your mortgage.

Make a payment

What happens when I make an overpayment?

When you pay extra, how it’s applied to your account depends on the type of mortgage you have and how you make the payment.
 

1. Your hub:

• Choose which account to pay into
• If you have a repayment mortgage, you can choose to:
  • Pay less each month, or
  • Shorten the length of your mortgage. How long you have your mortgage is known as your mortgage term.
• If you have an interest only mortgage, you can only lower your monthly payment.

2. Our website or bank transfer:

• If your mortgage is made up of more than one account, your payment will be spread across them. This is so you’re put in the best financial position

• We’ll automatically reduce your monthly payment. You’ll need to get in touch if you want to reduce your mortgage term.

Is there anything else I need to know?

• You need to make a single payment of £500 or more for it to come off what you owe.
  • Smaller payments will be held on your account until the amount reaches £500
  • For example, if you pay an extra £100 each month, your payment will go down after five months. Until then, you’ll pay less interest, but your monthly payment will stay the same.
• Your new payment or mortgage term will start the month after your overpayment is applied to your account, not the date you pay it.
• If you want to reduce your mortgage term, you can do this when you:
  • Apply for a new mortgage rate, or
  • Make an overpayment.

• You can’t reduce your term when you make an overpayment if:
  • You’ve applied for a new rate which hasn’t started yet
  • Have a Help to Buy mortgage
  • The amount you’ve overpaid doesn’t reduce your mortgage term by at least one month.

• We’ll write to you before we make any changes to your account.

You can find out more on our ways to pay page.

• How is interest adjusted when I make an overpayment?

  For overpayments of £500 or more – interest will be automatically adjusted from the date we have your payment.

  For overpayments under £500 – send us a message from your hub to let us know you’ve made the payment. We’ll then manually adjust the interest from the date we have your payment. Your interest won’t be adjusted if you don’t tell us that you’ve overpaid.

• When do I need to pay an Early Repayment Charge (ERC)?

  You’ll pay an ERC when your mortgage is on a fixed interest rate and:

  • You pay more than your allowance in any financial year.
  • You ask us to apply payments to your account which are less than £500.

  Your allowance is the amount you can overpay without paying an ERC. This is usually 10% of how much you owe us as of the 31st of last March. You can check your allowance and how much your ERC might be in your hub.

  You won’t pay an ERC if your mortgage is on a variable rate.

• How do I apply for a new interest rate and overpay at the same time?

  You can apply for a new rate up to four months before your current deal ends. To overpay and switch at the same time, give us a few details and we’ll be in touch.

• Why has my overpayment been used to repay the balance owed from my payment break?

  When you took a break from making payments in 2020 or 2021, you paid nothing off your mortgage.

  When the payment break ended, we gave you a number of ways to pay back the payments you missed. One way was for you to pay a lump sum. We’ve used your overpayment to pay off the amount you owe.

• When will my overpayment show up on my hub?

  Your account will show your overpayment the day after you make it if you pay by BACS or CHAPS. It could take up to five working days after you pay using your hub or our website.

  When you log into your hub, you may see your mortgage balance hasn’t been reduced by the amount of your overpayment. This could be because:

  • Any arrears or fees outstanding on your account will be paid for first
  • You may have an Early Repayment Charge to pay
  • The monthly interest charged is added to your account at the start of each month and isn’t adjusted until your monthly payment it made.
     
    For example, your monthly interest is added to your mortgage balance on the 1st of the month and your monthly payment is due on the 17th. Between the 1st and 16th, your balance will appear higher due to the interest applied to your account. If you make an overpayment of £1000 on the 5th and your monthly interest was £100, your balance will reduce by £900 until your monthly payment is made.
• Why is the balance different between my overpayment confirmation letter and the amount shown in my hub?

  This will only affect you if your mortgage account number starts with 0.

  The interest you pay each month is the amount charged for the month before it. For example, if your monthly payment is on 26th June, your payment will include the interest charged from 27th May to 26th June.

  The balance in your letter – includes the interest charged from your last payment date up to the date of your letter.

  The balance in your hub – shows your payments made up to today but only the interest charged up to your last payment date.