Your mortgage payment options

While rates are so low at the moment, it's a great time to pay off that little bit extra if you can.

You could make one-off or regular extra payments to reduce your mortgage balance. Whichever way you decide you'll usually end up paying less interest overall. It is important to remember that any extra payments cannot normally be refunded at a later date. Plus, you may have to pay an early repayment charge if you repay more than a certain amount, usually 10% of your mortgage balance (some products have a higher limit) each year. You can confirm the amount of your overpayment allowance by completing the Mortgage Overpayment form. Remember to talk to us first so we can explain exactly what will happen and, where possible, give you the result you want

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What happens when you make extra mortgage payments?

One-off lump sums

If you make one-off, lump sum payments, you can either:

• Reduce the term of your mortgage and your monthly payments will stay the same (repayment loans only), or,
• Reduce your future monthly payments and leave your mortgage term unchanged (repayment and interest-only loans).

Note: depending on the terms and conditions of your mortgage early repayment charges may apply.

Regular payments

If you want to pay a bit more each month (make a regular overpayment), you can either:

• Talk to us first and we'll shorten your mortgage term which will make your monthly payments higher so you repay your mortgage sooner than originally planned (repayment mortgages only); or
• Decide on a fixed amount extra to pay every month, leaving the term as it is, which will result in your future monthly payments being reduced after you've made your overpayments.

Set up, amend or cancel a regular overpayment

Complete the form below to set up, amend or cancel a regular mortgage overpayment. You’ll need your mortgage account number, which can be found on your mortgage statement or other mortgage related letters.

Read our privacy policy to find out how we use your data: Privacy Policy
 

Mortgage Overpayment Form

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One-off lump sums

You can pay part of your mortgage whenever you want. They are known as lump-sum overpayments. When you make a payment, your mortgage balance will be reduced on the day we receive the money, and you'll start to be charged less interest. Then, because your balance is lower, you can either:

• Keep paying your current monthly payment so that you repay your mortgage sooner. However, when we next re-calculate your monthly payment, for example at an interest rate change, we will set the new monthly payment to a level that will repay your mortgage over the current mortgage term. Or
• Ask us to re-calculate your monthly payment immediately, so that you get to reduce your monthly payments but still repay your loan by the end of the current mortgage term. Or
• If your mortgage is set up on a repayment basis, you can apply to change the remaining term. If you do this, you will need to speak to one of our Mortgage Advisors who will check that you can afford the monthly payments over the new term and advise you if this is right for you.

If you make a lump-sum overpayment, it can't normally be refunded at a later date.

Important

An early repayment charges applies on some mortgages. You may have to pay an early repayment charge if, during your early repayment charge period, you repay more than a certain amount of your mortgage or switch to a new mortgage deal. You can make, each year, extra payments of up to 10% (some products have a higher limit) of the mortgage balance as at 1st January before a charge applies. The charge varies, depending on how long you have left on your mortgage deal.

You can confirm the amount of your overpayment allowance by completing the Mortgage Overpayment form. 

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As you can see, there can be different results if you make a lump-sum overpayment - so it's always best to contact us to let us know what you want to happen.

Find out more about early repayment charges

How to make a one-off lump sum payment

You’ll need your mortgage account number to quote as the reference for the payment. You can find this in any of your mortgage correspondence from us. If you quote your 14-digit mortgage reference we will spread the payment across all your mortgage sub-account(s).

If you wish to allocate the payment to a specific sub-account, you’ll need to use your 14-digit mortgage reference followed by the sub-account, for example to make a payment to sub-account 1 you should quote your 14 digit mortgage account number followed by 01 at the end without any symbols or spaces. Here’s how you can make a payment to your mortgage:

- By faster payment or standing order using our bank details (please use the relevant reference as explained above). Sort code: 30-28-86, Account number: 00000000

- Send a cheque, payable to TSB Bank Plc, to: Mortgages, TSB Bank Plc, PO Box 373, Leeds LS14 9GQ.

- Alternatively, you can make a debit card payment by calling us on 0345 835 3380. We’re here from 8.30am – 7.00pm Monday to Friday (except bank holidays). 

If you've been making regular overpayments so that you are ahead with your mortgage, you can make reduced payments for a while or even miss a payment up to the amount of those overpayments. However, when we recalculate your monthly payment (for example: Rate change, Product Transfer, Additional Borrowing, change of term or monthly payment, change of direct debit date) we use any overpayment you have made and you will need to start building up new overpayments before you can underpay again.

Request a payment holiday

You can ask for a payment holiday using our online form Mortgage Payment Holiday.

For more information, please see the Mortgage Payment Holiday section. We’ll give you an answer within 7 working days.

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We'll help you to move with the times. After six months of having a mortgage with us, and up until your mortgage comes to an end, you could apply to borrow more. So you can make plans to improve your home or look forward to a special event.

More about additional borrowing

You might be able to apply if:

• It’s been 12 months since you took your mortgage out with us.
• It’s been 6 months since you took out any additional borrowing.
• Your mortgage payments are up to date and have been for 12 months.
• You receive an income from a job or self-employment.

We try to help as many customers as possible but there will be some cases where a payment holiday may not be available.

These include cases where:

• Your property is owned jointly under a Shared Ownership scheme or Buy-to-Let basis
• Your mortgage is in arrears, experiencing financial difficulty or on an arrangement or debt management plan

If you are in arrears or experiencing financial difficulty, a payment holiday may not be the right option for you. Please call us on 0345 835 3374. We’re here 8:00am-7:30pm Monday to Friday (excluding bank holidays) and 8:00am-12:30pm on Saturdays.

You can apply for a payment holiday using our online form.

Everyone who is named on the mortgage must agree to the payment holiday.

Once you’ve applied, we’ll let you know our answer within 7 working days.

Apply for a payment holiday

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If you’d rather, you can call us on 0345 835 3380. We're here from 8.30am - 7.00pm Monday to Friday (except bank holidays).

We’ll need 5 working days to make this change. If your next payment is due during this time, we’ll make the change for the following month. If you aren’t able to make the next month’s payment, please call us on 0345 835 3374. We’re here 8:00am-7:30pm Monday to Friday (excluding bank holidays) and 8:00am-12:30pm on Saturdays.

If we say yes to giving you a payment holiday, we’ll let you know in writing.

A payment holiday doesn’t count as missed payments, so it won’t be reported to credit reference agencies. We’ll to report your account as being up to date with payments throughout your payment holiday. Please be aware that the balance of your mortgage will increase due to the build-up of interest.

During your payment holiday, other factors could still affect your credit file or your ability to obtain credit.

If you’ve already been given a payment holiday and you want to extend it, you’ll need to give our Mortgage Team a call on 0345 835 3380. We're here from 8.30am - 7.00pm Monday to Friday (except bank holidays).

Please call us on 0345 835 3374 8:00am-7:30pm Monday to Friday and Saturdays 8:00am-12:30pm (excluding bank holidays).

If you take a payment holiday, the interest will build up. This means you'll need to pay back more interest overall and your monthly payments will be higher afterwards.

If you have an interest-only mortgage or any interest-only part of your mortgage, a payment holiday will only cover the interest and not your full mortgage balance. If you have savings or investments that you plan to use to pay off your mortgage at the end of the term, it’s a good idea to regularly check that those are on track.

Here’s an illustrative example:

The amount your monthly payment will increase by, after the payment holiday depends on:

• Your balance

• Interest rate

• Remaining term

• Whether your mortgage is repayment, interest-only, or a combination of both

• And how long your payment holiday is for

The table below shows an example of how the payments could impact your mortgage. This shows a repayment mortgage over 2 different terms and an interest - only mortgage.

This example was worked out using a daily interest calculation and is based on a 3-month payment holiday.

We’ll write to you before the end of your payment holiday to let you know how much your new mortgage payments will be.

If you’re thinking of paying off your mortgage and would like to know how much you owe, we can provide you with a redemption statement. This will show any early repayment charge and closing administration charges that may be payable.

Find out more about requesting a Redemption Statement.

A certificate of interest shows you the interest charged to your mortgage for the requested period.

If you would like a certificate of interest, you can request this by using the TSB Mobile Banking app and selecting ‘Chat to us’.

Alternatively you can request a certificate of interest by completing the Mortgage Statement Request form.

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If you've had a change to your telephone number or email address, please call us on 0345 835 3380.

For other changes to your mortgage account, such as changing the length of your mortgage term or renting out your property please call us on 0800 056 1088 to discuss these changes. A charge may be payable for some services.

Find out more about mortgage charges