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.