If you want to pay off part of your mortgage or make overpayments where there is an early repayment charge, you can repay up to 10% (some products have a higher limit) of your mortgage balance each year without having to pay the charge.
The maximum amount you can overpay is calculated using the balance as at 1 January of the year in which you make the repayment.
If you repay the maximum amount then repay the remainder of the loan in full within six months, the early repayment charge will also be charged on the amount you initially repaid.
Where there is no early repayment charge period or it has expired you can repay the loan in full or in part whenever you want.
Whether you're looking to borrow more on your existing mortgage for home improvements or a special purchase, we've a range of products available for you.
When applying for additional borrowing, keep in mind:
£10,000 is the minimum amount you can borrow. If you need to borrow less, there are other borrowing option available
Borrow up to 85% of the value of your property, including your existing mortgage and additional borrowing - 75% if you have an interest-only mortgage
You must have had your current TSB mortgage for more than 6 months
Your payments must be up-to-date before you apply
Our mortgage adviser can recommend a loan that suits your needs and circumstances, and explain how it may change your monthly payments
In certain circumstances, and if your mortgage is up-to-date, you can pay less than the full monthly mortgage payment that is due, or even suspend your payments for a short time, although you would need to pay a charge. If you would like to know more about taking a payment holiday or an instalment break, see further information about payment flexibility.
If your existing mortgage is on an interest-only basis, you can apply to change it to a repayment basis at any time. If it's set up on a repayment basis, you can only switch it to interest-only if your total mortgage amount is 75% or less of your property's value, and you provide evidence of an acceptable repayment plan. See our list of
acceptable repayment plans. If you'd like to go ahead with your request, call 0345 835 3380 and choose option 2.
If your existing mortgage is set up on a repayment basis, you can normally only switch to interest only if your mortgage totals 75% or less of your property's value and you have an adequate repayment plan in place. However, if you are ever facing financial difficulties and, as a way of temporarily reducing your mortgage payments, you want to discuss just paying the interest each month for a while on a mortgage that totals more than 75%, please get in touch. Find out more about how we could help if you're facing financial difficulty.
If you move home, you may be able to take the terms of your current mortgage deal with you. This could be so you:
continue to benefit from a particular deal you took out, such as a fixed rate or tracker that you want to keep until the end of the original period of the deal, or
avoid having to pay an early repayment charge.
Taking your current deal with you means that, when you repay the mortgage on your current home to move, you take out a new mortgage on your new home for at least the same amount.
In other words, any fixed rate or tracker would continue to apply for the remainder of the original deal period; and, if there's an early repayment charge on your mortgage, you won't have to pay it. The charge would still apply though if, after you'd moved, you subsequently repaid the mortgage (or more than 10% of it) while you were still benefiting from the fixed rate or tracker.
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.
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. As a current concession you can make, each year, extra payments of up to 10% of the mortgage balance (as at 1st January) before a charge applies. We may reduce or withdraw this concession but will give you three months notice before we do.
The limit on any extra payments you can make each year before the charge applies is 10% of the mortgage balance outstanding on 1st January each year. This means you can pay up to 10% of your mortgage balance before incurring the charge, unless you go on to repay or change the rest of the loan within the next six months. The charge varies, depending on how long you have left on your mortgage deal.
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.
If there's a delay between repaying your current mortgage and taking out a new one on a new property, then you will have to pay any early repayment charge but in certain circumstances it may be refunded once your new mortgage starts.
If you move and want to take your mortgage deal with you, but your new mortgage is for a smaller amount, any early repayment charge that you have to pay will be based on the difference between the two mortgages.
If you're borrowing less and there's a delay between repaying the current mortgage and taking out the new one, the paragraph above - 'If there's a delay in your move' - applies, but the amount refunded will be calculated proportionately.
If your mortgage began before 1 November 2008, a different policy may apply, please call our Helpline on 0345 835 3380 for details.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.