Making overpayments on my mortgage

Most 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 is within a promotional period and Early Repayment Charges (ERCs) apply.

• Within a promotional period

  You can make a lump sum or regular overpayment without incurring an ERC, as long as:

  • Each repayment meets any minimum amount stated in your Offer. Individual payments less than the minimum will reduce the interest you pay from the next period but will not reduce your monthly payment.
  • The total amount overpaid each financial year (April 1st – March 31st) isn’t more than 10% of your mortgage balance. In the first year of your mortgage, this is calculated using your original loan, excluding added fees. After that, we use the balance at close of business on the previous March 31st.

  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.

  You can fully repay your mortgage at any point but the 10% overpayment facility cannot be used. We’ll charge you an Early Repayment Charge (ERC) on a full repayment. If you want to, you can use the 10% overpayment facility by making an overpayment before you fully repay. We’ll need to receive this overpayment at least one working day before you fully repay your mortgage.

• Outside of a promotional period

  If your promotional period has finished then there are no restrictions on the amount you can overpay. However, if you repay your mortgage in full, you must repay all fees relating to the closure of your account(s). You can refer to our Tariff of Mortgage Charges for more information on fees or request a redemption statement to confirm the fees applicable to your mortgage.

Once your overpayments exceed £500 we’ll automatically recalculate your monthly payments. If your account is made up of more than one part, and you’ve told us how you want the overpayment applied, then we’ll do exactly that. Otherwise, we’ll look to apply it in the way we see it being most beneficial to your mortgage.

If you make an overpayment of less than £500, and you 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.

Please give us a call on 0345 300 8000* if:

• You’d prefer to use your overpayment(s) to reduce your mortgage term rather than your monthly payment. We can look at what’s affordable for you and provide you with advice.
• You want to make an overpayment but are currently applying to switch to a new mortgage deal.

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

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*.