Overpayment FAQs

Can I overpay on my mortgage?

If you have a mortgage where Early Repayment Charges (ERC) apply, you can make lump sum payments in excess of your agreed monthly payment, up to a sum equivalent to 10% of your mortgage balance in each calendar year without incurring ERC’s.  Should you exceed this 10% limit in a calendar year, ERC’s will become payable in line with your specific mortgage product terms.

When you overpay, the amount you owe and the amount of interest you accrue is re-calculated immediately.   Please note that your monthly mortgage payment will remain unchanged unless you ask us to alter it.  You can ask us to alter it by calling our Contact Centre on 0330 3334000 or visiting your local branch.

If you have a mortgage account where no ERC applies or, when the ERC period has ended, then you are able to make overpayments without incurring any charges. Please refer to your illustration for further details.

Can I make lump sum payments over the 10% limit?

Any payments you make, which exceed the 10% limit (during the ERC period) will incur an ERC at the level specified in the “Early repayment” section of your mortgage offer.

When you make overpayments, the amount you owe and the amount of interest you accrue is re-calculated immediately. Please note that your monthly mortgage payment will remain unchanged unless you ask us to alter it.


What if I want to pay my mortgage off in full during the Early Repayment Charge period?

Your ERC may be calculated as a percentage of the original mortgage balance (please see your current mortgage offer document for further information). If you repay your mortgage in full during the ERC period, then the ERC you will have to pay will not be reduced by any overpayments you have made (regardless of whether you have incurred an ERC on such overpayments).

The maximum ERC you pay when you redeem within the ERC period will not be reduced to take account of any additional ERCs, which you may have been previously charged as a result of overpayments made by you, in excess of the 10% limit.

If I have more than one mortgage account, am I able to overpay on all the accounts individually?

If you have more than one mortgage account, the above rules will apply to each mortgage account individually.

How can I identify what the outstanding mortgage balance is for the purpose of overpayments?

The outstanding mortgage balance can be identified by reference to one of the 2 options below:

The outstanding mortgage balance will be either:

  1. The amount of the mortgage balance outstanding on the 1st January, or
  2. If the mortgage is not in existence on the 1st January, then it is the mortgage balance on the date that the mortgage starts.

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