Make a one-off overpayment

A one-off overpayment is when you make an extra payment on top of your monthly mortgage payment.

How it works

Making overpayments will reduce your mortgage balance. Any overpayments won’t automatically reduce your mortgage term or monthly payment. But when we next work out your monthly payments, we’ll use your new balance. Your term will remain the same.

We stop charging interest on any amount you overpay by on the day we receive the payment. So, you’ll owe less and have less interest to pay.

As your balance goes down, so will your Loan to Value (LTV). Your LTV is how much you owe compared to the value of your home as a percentage. If your LTV is lower, you could be able to apply for lower rates if you switch to a new deal or remortgage to a new lender.

We’ve put together a guide to help you decide if overpaying is right for you.

Personalised overpayment calculator

Overpayment limits and early repayment charges (ERCs)

Where ERCs apply, you can make overpayments of up to 10% of the amount owed as of 01 January. We call this your overpayment allowance, and it includes all regular and one-off overpayments you make during the year.

It can be easy to lose track of how much you’ve overpaid if you’re making regular overpayments. To find out how much of your overpayment allowance you have left, you can request it here or call us.

You can also use Home Wise under your mortgage in our mobile app or in your online banking account to check your overpayment allowance. You can do this 24 hours a day, 7 days a week and if you need help, you can message us anytime.

If you have a hearing or speech impairment, you can contact us using the Relay UK service. There’s more information on the Relay UK help pages. If you’re Deaf and a BSL user, you can use our BSL SignVideo service.

How we work out ERCs on overpayments
If you overpay more than 10% over the year, we'll only charge you on the balance you overpay above 10%.

As ERCs reduce through the life of your mortgage, it might be best to wait until your ERC ends or changes before you make a payment. For example, your latest offer letter could show your ERC rate will go down on 01 July. If you make your payment on 30 June, you’ll have to pay more.

If ERCs don’t apply to your mortgage
You can overpay as much as you like without being charged an ERC. But there might be other fees applied if you pay off your mortgage in full.

We can change your yearly overpayment allowance at any time
Check before you make any overpayments. We’ll always give at least 3 months’ notice before we do this.

Learn more about ERCs

How to make a one-off overpayment

Before you start: You must be named on the mortgage to make a payment. We also don't accept payments by credit card or debit Mastercards (cards beginning with a 5). Before making any large payments, it’s best to check your payment limits with your bank.

  • You can easily make a one-off overpayment using our mobile banking app or online banking. Simply log in and select ‘Pay & transfer’ if you’re using the app or ‘Payments and transfers’ in online banking. Then make your payment to your mortgage account.

    Continue with our app

    Not registered? You can register here to view and manage your mortgage.

  • To make a one-off overpayment from another bank, you’ll need these details:

    • Sort code: 30-00-00
    • Account number: 00353019
    • Account name: Lloyds plc

    For the payment reference, input your mortgage account number, plus an extra ‘00’ on the end, so it’s 16-digits in total.

    To make an overpayment to a sub-account, replace ‘00’ with the 2-digit sub-account number instead. For example ‘02’. How do I apply my overpayment to a specific sub-account?

  • To make a one-off overpayment by phone, give us a call. You'll need your 14-digit mortgage account number to hand. Once complete, you can request a text message to confirm your payment. Once you’ve made your overpayment and would like to apply it to a specific sub-account, you’ll need to call us again and choose an option where you can talk to us.

    Good to know: The most you can overpay by phone in one go is £60,000, but you can make more than 1 payment each day. Otherwise, consider our other options or come and see us in branch.

  • Make all cheques payable to 'Lloyds Bank plc'. On the back, write your 14-digit mortgage account number plus an extra ‘00’ on the end, so it’s 16-digits in total. 

    To make an overpayment to a sub-account, replace ‘00’ with the 2-digit sub-account number instead. 

    For example, ‘02’. To learn more, visit What are sub-accounts and how do I overpay one?

    Post to:
    Lloyds
    Barnett Way
    Gloucester
    GL4 3RL

    You can also pay your cheque in at your nearest branch.

What happens after you make a one-off overpayment?

You can choose one of these options:

Continue as usual

Request a new monthly payment

Request to reduce your mortgage term

Continue as usual

The overpayment will reduce your balance and save you interest. Your mortgage term will stay the same.

When we need to work out your monthly payment again in the future, we’ll take your overpayment into account. 

For example, your overpayment can help reduce the costs of a potential interest rate rise when switching to a new deal.

Request a new monthly payment

We’ll take your overpayment into account and work out your new monthly payment. Your mortgage term will stay the same. The changes will only apply from the next calendar month

To do this, you’ll need to call us.

If you pay by Direct Debit: If your mortgage payment is due within 7 days in the next calendar month, we might not have enough time to update the amount.  This means your new monthly payment will start the following month.

We’ll contact you by letter or email within 5 working days to let you know when your payments will be amended.

Request to reduce your mortgage term

We’ll take your overpayment into account and review whether you can afford to reduce your mortgage term.

To do this, you’ll need to talk to a mortgage adviser. 

It’ll take us around 48 hours to process your overpayment, but you can call us to book your appointment call back straightaway. 

Introducing Home Wise

Manage your mortgage all in one place.

Learn more

Getting started online

 

Mobile banking app

Join our 10 million app users.

  • Simple and secure login.
  • Set up handy notifications.
  • Message us online.

Online banking

Log in to view or manage your accounts on our website.

Log in

Register

Mobile banking app

Join our 10 million app users.

  • Simple and secure login.
  • Set up handy notifications.
  • Message us online.

Continue to app

Online banking

Log in to view or manage your accounts on our website.

Log in

Register

You may also like

Meet our app spaces

From everyday banking to long term goals, get an at-a-glance overview of what's important to you.

Explore spaces

Existing customers

Get answers to your everyday questions. We have a wide range of topics to support you and your mortgage.

Existing customers

Everyday banking online

Manage your profile, money or cards from your sofa with the app or online banking.

What you can do online

Managing your mortgage

Learn how to make the best of your mortgage with us.

Manage your mortgage

Managing your mortgage

Learn how to make the best of your mortgage with us.

Manage your mortgage