Overpay and reduce your mortgage

Making a lump sum overpayment on your mortgage, also known as a partial redemption, will reduce the total amount outstanding on your mortgage, and as your mortgage balance is lower you will pay less interest on the outstanding balance.

If you find yourself with extra cash, you may wish to repay this against your mortgage account. Many of our customers can make lump sum overpayments, please call us on 0845 300 8000* to check whether your mortgage has an overpay facility.

The amount you can overpay by depends on whether you're still tied into the promotional rate on your mortgage. You can only reduce the term of your mortgage if you are outside of the promotional period and no early repayment charges apply.

If you’re in a promotional period, many of our mortgages allow you to overpay up to 10% of your mortgage balance each year without incurring any early repayment charges. This is calculated based on the outstanding mortgage balance as at 31st March the previous year and the minimum payment is just £500. If you would like to pay more than 10% per year then early repayment charges may apply. Please call us for details.

If you’re out of your promotional period and no early repayment charges apply, the amount you can overpay by is unlimited. However if you pay off your mortgage in full charges may apply.

Making a lump sum overpayment

When you make a lump sum overpayment you can choose whether you'd like to reduce your monthly mortgage payment, or to reduce your mortgage term to be mortgage free sooner. Please note our systems automatically reduce your monthly payment, so please advise us if you'd like to reduce your term so we can arrange this for you.

If you would like to make a lump sum overpayment and your mortgage is tied into a promotional period, please call us on 0845 300 8000* and we’ll talk you through what’s involved and arrange everything over the phone.

If your mortgage is out of a promotional period and no early repayment charges apply, you can either call us on 0845 300 8000* to arrange an overpayment via credit/debit card, or complete the Part redemption form below and send it to us together with a cheque for your overpayment. Please make all cheques payable to Bank of Ireland and quote your mortgage account number and address on the back of the cheque. Send all cheques to Mortgage Customer Services Department, Bank of Ireland,
PO Box 27, 1 Temple Quay, Bristol, BS99 7AX. We recommend that you send this by
recorded delivery.

To find out more about making overpayments and to use our overpayments calculator which allows you to see the effect of an overpayment click here.

Download the part redemption form (PDF)

Flexible mortgages

If you have a flexible mortgage the process for making lump sum overpayments is slightly different, please call us on 0845 300 8000* for more details.

Your questions answered

If you're unsure of anything, our most frequently asked questions might help you.