Make an overpayment

How do I make an overpayment?

You can make overpayments from your hub. Just log in to your hub, scroll down to the summary and click on Make a payment.

• You can pay up to £99,999 to each account that makes up your mortgage
• You can pay at least £500 if your mortgage rate is fixed, or £100 if it’s a variable rate. This is so we can apply the payment to your mortgage automatically
• You must pay from a UK account that’s in your name or joint with someone else
• You can choose:
  • Which part of your mortgage you want to pay into if it’s made up of more than one account
  • To pay less each month, or
  • Shorten the length of your mortgage, known as your mortgage term
• See how much your ERC will be if your mortgage rate is fixed.

Log in or register for your hub today.

Can I pay by credit card?

Yes, you can but you should remember that:

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

Visit our money worries page if you’re struggling to pay your mortgage.

Is there anything else I need to know?

• If your mortgage is made up of more than one account, you can’t pay into the same account for up to seven working days after you make an overpayment.
• You’ll have to pay an ERC if your interest rate is fixed and you ask us to apply a payment which is less than £500 to your account. If you pay through your hub, the minimum you can pay is £500.
• Your new payment or mortgage term will start the month after your overpayment is applied to your account, not in the month it’s paid.

• You can only shorten your term when you overpay through your hub. However, you can’t change your term if:
  • Your mortgage is on interest only
  • You have a Help to Buy mortgage
  • You’ve applied for a new rate which hasn’t started yet
  • The amount you overpay doesn’t reduce your mortgage term by at least one month.

• You can pay by bank transfer if you want to overpay:
  • From a non-UK bank account
  • More than £99,999.

  You’ll need to login to your hub for details on how to do this.

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

• How is interest adjusted when I make an overpayment?

  When you pay through your hub, the interest is automatically updated from the date we receive your payment.

  The money will stay on your account as a credit if you pay by bank transfer. This means your monthly payment won’t change, but you’ll pay less interest overall.

• 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 make an overpayment which is less than £500 and ask us to apply it to your account.

  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.

• When will my overpayment show up on my hub?

  Your overpayment will show on your account the day after you pay it.

  Your balance may not reduce by the amount of your overpayment. This could be because:

  • Any arrears or fees you need to pay will be paid first
  • You may have an ERC to pay
  • We add the monthly interest to your account at the start of each month. It isn’t then adjusted until we receive your next monthly payment.

    For example:

    • Your monthly payment is due on the 17th. The monthly interest is added to your account on the 1st of the month
    • Between the 1st and 16th, your balance will be higher due to the interest added
    • You make an overpayment of £1,000 on the 5th and your monthly interest is £100
    • Your balance will reduce by £900 until we receive your next monthly payment.

  If you make an overpayment by bank transfer, the money will stay on your account as a credit. Your hub will show a reduced mortgage balance the day after you make the payment.

• Why is the balance different between my overpayment confirmation letter and the amount shown in my hub?

  The balance in your letter

  This is how much you need to pay on your loan at the date of the letter. It includes any overpayments you’ve made in the current month but not the interest or monthly payment. This is because your monthly payment is worked out after any overpayments are made. You can also clearly see how much you’ve reduced your loan by.

  The balance in your hub

  This is the total amount you owe us up to yesterday. It includes any interest, monthly payments or overpayments for the current month.

  If you want to pay off your mortgage in full

  You’ll need to ask us for a redemption statement. This shows the total amount you need to pay to close your account including any fees or charges. You can request a statement from:

  • Your hub. Log in, select Tools, then the link How much would it cost to pay my mortgage off?
  • Our website using our online form.