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If you find yourself with extra cash, you may want to make an overpayment on your mortgage (also known as a part-redemption or capital repayment). Many of our mortgages allow you to overpay, giving you the benefit of reducing the amount of interest you pay.

You can check whether your mortgage has an overpayment facility by reading the last mortgage offer we sent you, or by calling us on 0345 300 8000*. If your mortgage is made up of more than one account, then different overpayment options may apply to each.

You can make an overpayment using our online payments service or by calling us on 0345 300 8000*. Online payments are limited to a maximum of £12,000. If you want to make a payment over this amount please call us.

When you make an overpayment, you must tell us how you want the money applied to your account. If you ask us to apply it as a part-redemption (subject to minimum payment restrictions) then we'll reduce your monthly payment. If you wish to make any other changes, you’ll need to call us on 0345 300 8000* to discuss your options.

If you don't tell us how you want the money applied and you make an overpayment of £500 or more, then we'll automatically apply it as a part-redemption and recalculate your monthly payments. If you make a payment of less than £500 and either don't tell us how you want the money applied, or you're within an ERC period, then the money will be credited to your account. This will reduce the interest you pay with effect from the start of your next interest period, but it won't reduce your monthly payments or remaining mortgage term.

How much we allow you to overpay and how it can be applied depends on whether an Early Repayment Charge (ERC) currently applies to your mortgage.

Within an ERC period

You can make lump sum or regular monthly overpayments without incurring an Early Repayment Charge (ERC), subject to:

  • Each payment being at least £500 (individual payments of less than £500 cannot be applied as a part-redemption).
  • The total amount overpaid within each year not exceeding 10% of your opening mortgage balance. In the year that your mortgage starts the 10% allowance is calculated on the original loan amount (excluding added fees).  In subsequent years the 10% allowance is calculated on the outstanding mortgage balance at close of business on the previous 31st March.

If you pay more than 10% in any year then we’ll charge you an ERC on each amount you repay above your allowance.

Outside of an ERC Period

If your ERC period has ended then there are no restrictions on the amount you can overpay.

However, if you repay your mortgage in full, you must pay all fees relating to the closure of your account. See our Tariff of Mortgage Charges (PDF) for details.

Call us on 0345 300 8000* to talk to us about overpaying.

Read our Frequently Asked Questions for more information on managing your mortgage.