Make an overpayment

When you pay more than your monthly mortgage payment, it’s called an overpayment. Overpaying could help you save money as you’ll pay less interest over the length of your mortgage.

If your mortgage is on a fixed interest rate, you can usually overpay up to 10% of what you owed us on the 31st of last March without paying an Early Repayment Charge (ERC). This is called your allowance. You can see how much your allowance is in your hub.

You can overpay as much as you want if your mortgage rate isn’t fixed. However, read how to pay off your mortgage if you want to pay it off in full.

Use our overpayment calculator to see how paying more could:

  • Lower your monthly payments, or
  • Help you pay off your mortgage faster.

Overpayment calculator

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 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.
  • An ERC will be applied to any payments under £500 if your interest rate is fixed.
  • 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’t shorten your term when you make an overpayment 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.

    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 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?

    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.

 

Your property may be repossessed if you do not keep up repayments on your mortgage