YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The benefits of overpaying a mortgage
You can start to reduce your mortgage balance, meaning you could potentially pay off your mortgage sooner.
You can save towards a future mortgage payment holiday.
When savings rates are low, the amount you save on your mortgage interest could be more than you would otherwise earn in savings interest.
When to make early mortgage repayments
There are certain circumstances when overpaying a mortgage is a good idea:
If you get a regular bonus or inherit some money so you can make a lump-sum payment.
If you're planning on starting a family and would like to reduce or stop paying your mortgage while on maternity or paternity leave.
If you like the idea of being mortgage-free earlier.
Ways you can overpay
Overpaying a mortgage is easy to do and just means paying a bit extra on top of your usual monthly payment, or paying occasional lump sums.
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.
The most flexible way to make an overpayment is to set up a payment from your current account.
Some months you might want to pay more than other months, and at times, you might not want to make an overpayment at all.
You can overpay an amount of your choosing, subject to your mortgage terms and conditions. For many of our mortgages this is capped at 10% of your mortgage balance per year.
Pay from your bank or building society account.
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.
Other ways to make an adhoc payment:
Over the phone by debit card
In branch by cash or cheque
Increasing your regular monthly payment
If you'd like to make a regular additional payment, and your standard mortgage payment is collected by Direct Debit, you will need to call our Customer Contact Centre to authorise the collection of your chosen amount on top of the standard monthly payment.
This overpayment will continue every month until you tell us to stop or change it.
Overpayments to mortgages with more than one part
Where a regular additional payment is registered, it’s possible to make the overpayment to a particular part of your loan by giving us specific instructions when setting up the arrangement with us.
Mortgage overpayment questions asked by you
Will my overpayments affect the length of time I have left to pay the mortgage?
Making an overpayment won’t automatically cut down your mortgage term.
Overpayments will cut down your mortgage balance, which means we’ll charge you less interest. This means, at your annual mortgage review, we will lower the amount you have to pay per month in the coming years.
If you'd like to reduce your mortgage term length instead, get in touch: