Whether you’ve got a bit of spare cash each month or some savings in the bank, you could save money and be mortgage-free quicker by making overpayments.
Making an overpayment reduces the amount you owe on your mortgage right away – giving you more flexibility in the future. You could lower your monthly payments in part or full or reduce your term. The choice is yours.
How do you overpay?
Overpaying on your mortgage is quick and simple. You can set up a regular monthly payment over your normal amount or pay a one-off lump sum. It’s completely up to you.
Just give us a call on the number below at least 14 days before your next payment is due and we’ll talk you through your options.
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.
If you do, this would only happen during your early repayment charge period (all details will be set out in your mortgage illustration and mortgage offer).
During each 12-month anniversary period of your mortgage, you can overpay by up to 10% of what's left on your mortgage without paying a charge. But if you overpay by more than 10%, you’ll pay a charge on the amount that's over that initial 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.
Once you’re outside your initial fixed rate period, you can overpay as much as you like without any charges.
To find out more about our terms and conditions click here for:
Residential terms and conditions (PDF 772KB)
Buy To Let terms and conditions (PDF 800KB)