Guide to overpaying your mortgage
How to make additional payments and take years off your mortgage.
Why make overpayments?
Making overpayments on your mortgage can make a big difference to the amount of interest you pay and potentially knock years off the length of time you will being paying your mortgage.
Another advantage of making overpayments on your mortgage is the chance to take a payment holiday sometime in the future. If you want to take a payment holiday, you must arrange it with us first.
How does it work?
It’s easy to do and just means paying a bit extra with your usual monthly payment, or making occasional lump sum payments on top of your monthly payment. See how to make overpayments
Any overpayments you make will be credited to your mortgage account the same day, which will reduce the amount you owe straight away. And because interest on your mortgage is charged daily, your overpayment will reduce the amount of interest charged, straight away.
Try our overpayment calculator and see how much you could save.Overpayment calculator
How it could work for you
- You can start to reduce your mortgage balance, meaning you could potentially pay off your mortgage sooner.
- Overpaying your mortgage enough to cover one or more extra regular month’s payments, could mean you can take a payment holiday in the future. If you want to take a payment holiday, you must arrange it with us first.
- As savings rates are currently low, the amount you would save on your mortgage interest could be more than you would otherwise earn in savings interest.
When you decide to make a mortgage overpayment it’s worth looking at which option suits your circumstances best. For example:
- If you get a regular bonus or inherit some money – make a lump-sum payment whenever it suits you.
- If you are planning on starting a family and would like to reduce or stop paying your mortgage while on maternity or paternity leave – make enough overpayments to cover the months you want to change your payment for. You can only stop or reduce your standard monthly mortgage payment by arrangement with us first.
- You like the idea of being mortgage free earlier – making regular overpayments will reduce the interest you pay, enabling to reduce the length of your mortgage term.
However you choose to overpay, you can change or stop at any time.
Try our overpayment calculator and see how much you could saveOverpayment calculator
The payment details you'll need
Sort code: 60 92 04
Account number: the first eight digits of your mortgage account number
Reference or roll number: all 10 digits of your mortgage account number
Payee: the name your mortgage account is under.
You can overpay:
- Online from your bank or building society account.
- In branch by cash or cheque
- Over the phone by debit card
Types of overpayment
Things to be aware of
- The amount you can overpay each year without receiving Early Repayment Charge, depends on the mortgage deal you have.
- All of our mortgage deals allow you to overpay up to 10% of your mortgage balance each year. Some products allow more.
- Once you have made an overpayment, you can’t take that money back from your mortgage like you could a savings account. Though it may be possible to take a payment holiday.
Please check your product factsheet and mortgage offer for full details of overpayment restrictions and Early Repayment Charges.