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 a early repayment charges if you repay more than a certain amount, usually 10% of your mortgage balance, each year. You can also request your 10% 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.
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.
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Mortgage Overpayment Form