Mortgages Customer Support

Overpaying your mortgage

With all of our mortgages, you can make overpayments. That means paying more than your monthly payment – either in a lump sum at a time of your choosing or by paying extra each month.

Why overpay?

Overpaying can give you a number of options for the future – from paying your mortgage off quicker, to reducing your repayments or even taking a payment holiday.

Charges for overpayments

Depending on when you want to make an overpayment, and how much you want to pay, you might have to pay an early repayment charge.

When you first start your mortgage or when you switch to a new product, there may be an early repayment charge period. During that period, you can overpay by up to 10% of what's left on your mortgage, in a 12 month anniversary period, without paying a charge. But if you overpay more than 10%, you'll pay a charge on the payment amount that's over the 10%.

For example, if 10% of your mortgage is £20,000 and you make an overpayment of £25,000, you'll pay an early repayment charge on £5,000.

All the details of what charges you'll have to pay, and when your early repayment charge period ends, would be contained within your mortgage illustration and mortgage offer.

When you come out of the early repayment charge period, you can pay as much as you like off your mortgage without paying any charge.

What we do with your overpayment

When we get your overpayment we put it into your overpayment reserve and it immediately reduces the amount you owe on your mortgage. You may be able to use your overpayment reserve to underpay or take a payment holiday in the future.

If you want to bring your future monthly payments down

Overpaying won’t automatically bring your monthly payments down. If you want us to recalculate your monthly payments to take your overpayment into account, then you need to get in touch and ask us to do this. If you use your overpayment reserve to reduce your regular monthly payments then your overpayment reserve will be reset to £0.

If you want to change your mortgage term

You can use your overpayment reserve to reduce the term on your mortgage, but we'll need to take you through another affordability assessment first. You can call us on 0345 111 8020** to talk about your options.

Want to overpay?

Call us on 0345 111 8020** and we will talk you through your options. Please get in touch at least 14 days before your next payment is due.

If you make overpayments on your mortgage, you can then use this to change your mortgage payments in the future. For example, you can take a payment holiday – where you stop your monthly payment – or pay a bit less each month. But you do need to apply to do this.

How much you can underpay by

How much you can underpay, and for how many months, depend on two things.

Firstly, how much is in your overpayment reserve, which is where any overpayment you make is paid into. Secondly, the amount you've underpaid by, in a 12 month anniversary period, isn't more than the amount of two of your contractual monthly payments.

You should remember that when you underpay on your mortgage, you're increasing the amount you owe on your mortgage.

You can find out more about underpayments in our Mortgage Terms and Conditions (PDF, 1.3MB).

Want to underpay?

Please call us on 0345 111 8020 ** and we’ll talk you through your options. Please get in touch at least 14 days before your next payment is due.