Making overpayments on my mortgage

Making a lump sum and/or regular overpayments could help you to pay off your mortgage earlier. The sections below will take you through everything you need to know.

Overview

Many of our mortgages allow you to overpay, helping you to reduce the amount of interest you pay overall.

You can see whether your mortgage allows overpayments by checking the last mortgage offer we sent you. Alternatively, you can complete an online request and we’ll send you confirmation. If your mortgage is made up of more than one account, then different overpayment options may apply to each.

How much we allow you to overpay, and how it can be applied, depends on whether your mortgage has an Early Repayment Charge (ERC).


  • Within a promotional period

    You can make lump sum or regular monthly overpayments without incurring an ERC, as long as:

    • Each payment is at least £500 (individual payments of less than £500 cannot be applied as a part-redemption).
    • The total amount overpaid each year isn’t more than the percentage of your opening mortgage balance you’re allowed to overpay. In the year that your mortgage starts this percentage is calculated on the original loan amount (excluding added fees). After that it’s calculated on the outstanding mortgage balance at close of business on the previous 31 March.

    Please be aware that if you pay more than your allowance in any year, then we’ll charge you an ERC on each amount you repay above this.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Things to consider

If you make an overpayment of £500 or more we’ll automatically recalculate your monthly payments. If you’ve told us how you want the overpayment applied to your account(s), then we’ll do exactly that. If we haven’t received any instructions, we’ll look to apply it in the way we see it being most beneficial to your mortgage account(s).

If you make an overpayment of less than £500, and either don’t tell us how you want the money applied or you’re within an Early Repayment Charge (ERC) period, then the money will be credited to your mortgage account. This will reduce the interest you pay from the start of your next interest period, but won’t reduce your monthly payments. The overpayment will only be automatically applied to the account (and reduce your monthly payments) when the combined total of your additional payments reaches £500 or more.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Overpayment calculator

Our overpayment calculator will show you how much you could benefit from paying a little extra each month.


Overpayment Calculator


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Make an overpayment

We’ve made sure it’s quick and easy to make an overpayment using our online payment system. It’s available 24/7, 365 days a year, so you can use it whenever it suits you.

Online payments are limited to a maximum of £12,000. If you want to make a payment over this amount, or you’re having trouble making your payment, please give us a call on 0345 300 8000*.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE