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.
Making overpayments may reduce the length of your mortgage or the amount of interest you pay overall.
Check if your mortgage allows overpayments in your hub. When making an overpayment, we automatically reduce your monthly payment, however you can apply to reduce your term instead.
Reducing your mortgage term
If you want to overpay and reduce the length of your mortgage, the balance of your overpayment(s) must be at least £500 and enough to reduce your term by at least one month.
Reducing your monthly payments
There’s no minimum amount for individual payments, but we’ll only recalculate your monthly payments once the balance of your overpayments reaches £500. You can tell us how much to apply to each loan if your mortgage has more than one account (for example if you’ve borrowed more).
If your mortgage is made up of more than one account, then different overpayment options may apply to each. You can find details of the overpayments available on each account through your hub.
If the balance of your overpayments is less than £500, we’ll credit the payments to your mortgage. This will reduce the interest charged from the next interest period, but won’t reduce your normal monthly payment.
Switching to a new mortgage rate
If you’re currently applying to switch to a new mortgage rate, or are about to, send us a case message through your hub before making an overpayment. We’ll review your account and let you know the best way to proceed.
If you’re within your promotional period
You’ll incur an Early Repayment Charge (ERC) on each payment if:
- You ask us to apply payments less than £500 to your mortgage account. Details of the ERCs that apply to you can be found in your latest mortgage Offer.
- You pay more than your maximum allowance in any year. You can find your allowance in your hub.
If your promotional period has finished
There are no limits to the amount you can overpay. However, if your overpayment balance is below £500, you’ll need to tell us you want to apply it to your account.
If you close your mortgage in full, you must repay all fees relating to the closure of your account(s). You’ll need to request a Redemption statement to confirm the fees applicable you. Our Tariff of mortgage charges has more information on fees.
See how making an overpayment changes your term or monthly payments.
You can pay online 24/7, 365 days a year, whenever it suits you. A quick and easy way to make overpayments.
Once the balance of your overpayments reach £500, we’ll automatically reduce your monthly payment amount. If you’d prefer, you can apply to reduce the length of your mortgage instead, once your overpayment has been made.
If you’re having trouble making a payment, get in touch.