Mortgage overpayment guide
Your home may be repossessed if you do not keep up repayments on your mortgage.
Overpayments and allowances
A mortgage overpayment means paying a bit extra on top of your usual monthly payment. This could be a regular overpayment each month, or a one-off overpayment as a lump sum.
Overpaying can help to pay your mortgage off sooner, and reduce the overall amount of interest you pay. But overpaying by too much on some mortgages can be costly.
What's on this page?
Before making an overpayment
Overpayment allowance
Most mortgages let you overpay a percentage of your outstanding balance each year, without any early repayment charges (ERCs). This is your overpayment allowance. You can overpay more, but you'll need to pay an early repayment charge on anything over the allowance.
For example, you might have a mortgage of £100,000 with a 10% yearly overpayment allowance. This means you can overpay as many times as you like within a year, but if you overpay by more than 10% of your balance (£10,000), you'll need to pay early repayment charges.
Check your mortgage details to see what you can overpay. If your mortgage has more than one part, allowances on each part could be different.
Overpayment period
Your overpayment allowance resets every year, on the date your mortgage started. At YBS, you can see your exact overpayment period and amount by logging in to your mortgage account.
You can't carry over any unused allowance to the following year.
If your mortgage has more than one part, the overpayment period may be different for each part. This is important if you're planning monthly overpayments. It's a good idea to check when each part's allowance will reset, to make sure you avoid any early repayment charges.
Overpayments before switching mortgage deal
In the final 120 days of your YBS mortgage deal, you can overpay by more than your usual allowance without paying an early repayment charge (ERC).
During this time, you can overpay as much as you like, as long as you don't repay your mortgage in full.
This could allow you to reduce your balance before switching your mortgage deal, which may help you secure a lower rate. The minimum balance for switching deal is £3,000.
To make an overpayment, you can call 0345 1200 100. For advice on your mortgage switch options, you can book a phone appointment with our mortgage team.
How overpayments affect your mortgage
You may be able to use your overpayment in a few different beneficial ways:
How to make an overpayment
| Method | One-off overpayment |
|---|---|
| Online | If you’re a YBS customer, you can log in to your account to get all the details you need to make a one-off overpayment through your bank. |
| Payments from another bank or building society | To make a payment from another bank or building society, here are the details you'll need: Our Sort Code: 60 92 04 |
| Over the phone | You can use our 24/7 automated telephone service to make an overpayment by debit card. Please have your account number or customer number to hand. Monday to Friday 9am to 5pm Saturday 9am to 1pm Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones. |
| In branch | You can make an overpayment by cash or cheque at your local branch. Use our Branch Finder to find your nearest one. |
| Method | Regular overpayment |
|---|---|
| Online | If you’re a YBS customer, you can log in to your account to send a secure message to change how much you pay, you may also be asked to call our Customer Contact Centre to confirm your overpayment. |
| Offline | If you don't manage your account online, please call our Customer Contact Centre. Monday to Friday 9am to 5pm Saturday 9am to 1pm Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones. |
Important information
You can only have payment holiday by overpaying first. You will need to speak to us and agree the holiday before you take a payment break or reduction. This may allow you to have a payment holiday without extending length of your mortgage.