Make a one-off overpayment
A one-off or lump-sum overpayment is an extra payment on top of your monthly mortgage payment.
You can do this online
- An overpayment will reduce your mortgage balance and save you interest.
- Make a one-off overpayment to your mortgage at any time.
- If you bank with us, it's quick and easy to make an overpayment online.
Remember, you’ll still need to make your normal monthly mortgage payment.
Steps to take
We'll guide you through it.
Getting started online
Let’s look at the details
-
-
-
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.
-
You can choose a sub account to overpay when you pay in our app or online banking.
If not, then we will apply your extra payment across all parts of your mortgage like your normal monthly payment. You can check your sub accounts online or on your annual statement.
Keep in mind, some mortgages have an early repayment charge if you overpay more than 10% of your balance in a calendar year.
Information about sub accounts
Your mortgage may be a combination of different repayment methods with different interest rates over different mortgage terms. If so, your mortgage will be split into multiple parts called sub accounts. Most customers will have a sub account 01, which is their main mortgage and a sub account 99 which holds fees. Some customers, may also have a sub account 98 if they have a mortgage account fee.
Each sub account has a separate monthly payment that we total before collecting the full amount from you each month. When we receive your total monthly payment, we split it and give each sub account the amount it needs to ensure you repay your interest charges for that month.
For repayment sub accounts, each month, your payments go towards reducing the amount you owe as well as paying off the interest.
For interest-only sub accounts, the balance doesn't reduce as you're only paying back the interest and it's a requirement that you have a repayment plan in place. Find out more about the different ways of repaying your mortgage.
Worked example
If your mortgage has 2 sub accounts and your total monthly payment is £400, of which:
- £100 is the monthly payment on sub account 01
- £300 is the monthly payment on sub account 02.
We calculate what percentage of your total monthly payment is made to each sub account as follows.
- Payment on sub account 01 £100 / £400 x 100 = 25%
- Payment on sub account 02 £300 / £400 x 100 = 75%
If you overpay £100 on top of your regular monthly payment, we'll apply £25 of the overpayment to sub account 01 and £75 to sub account 02. That's 25% to sub account 01 and 75% to sub account 02.
Your mortgage in your pocket
Get Home Wise
- Manage your payments.
- Set up regular overpayments.
- Use the overpayment calculator.
And much more, all online. Join the community of customers managing their mortgage at the touch of a button.
You may also like
