If your interest rate and mortgage payment has gone down, you may feel you can afford to start paying extra off your mortgage. The advantage is that the sooner you do, the less interest you’ll pay overall. You could:
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Regular extra payments
If interest rates go down, let us know if you’d like to make regular extra payments by keeping your monthly payment the same, or if you’d like to increase it. Where interest is calculated on a daily basis, your balance is reduced following every overpayment so the interest you’re charged will go down. However we won’t recalculate the monthly payment each time, we’ll wait until the next time there’s some other reason for recalculating your monthly payment, such as a rate change. If you’re not sure whether your mortgage is on daily interest, please contact us.
Request today:
You’ll need your mortgage account number, which can be found on your mortgage statement or other mortgage related letters. Print out our pdf form* and send in your details (opens in a new window).
One-off lump sums
One-off lump sum payments are sometimes known as capital repayments.
If the lump sum is for less than £1,000
If you ask us to recalculate your term (repayment mortgages only) or your monthly payment straightaway, a small administration charge will be added to your mortgage account.
If you don't want to pay the charge, just let your monthly payment remain the same until the next time there’s some other reason for recalculating it, such as an interest rate change. As your payment will have to be recalculated at that time anyway there’s no charge. Where interest is calculated on a daily basis, your lump sum payment will still reduce your balance immediately and you’ll start to be charged less interest, it’s just that your monthly payment won't reflect the reduced interest straightaway. If you’re not sure whether your mortgage is on daily interest, please contact us.
If the lump sum is for £1,000 or more
If you ask us to recalculate your term (repayment mortgages only), a small administration charge will be added to your mortgage account. If we don’t hear from you, we’ll recalculate your monthly payment straightaway and the administration charge will apply.
So, if you don't want to pay the charge, please contact us and ask to let your monthly payment remain the same until the next time your payment is recalculated, such as an interest rate change. As your payment will have to be recalculated at that time anyway there’s no charge. Where interest is calculated on a daily basis, your lump sum payment will still reduce your balance immediately and you’ll start to be charged less interest, it’s just that your monthly payment won't reflect the reduced interest straightaway. If you’re not sure whether your mortgage is on daily interest, please contact us. See our charges.
How will making a one-off lump sum payment affect my mortgage?
Interest-only mortgage - A capital repayment will reduce the balance, the interest you pay will be less as a result and your monthly payments will go down.
Repayment mortgage - You’ll reduce your mortgage balance, the interest you pay will be less as a result and you can decide whether to reduce your monthly payments or shorten your mortgage term.
Request today:
If you’d like to go ahead, select ‘Mortgages’ as your query and complete the ’Make a payment to my mortgage’ form and we’ll call you back. You’ll need your mortgage account number, which can be found on your mortgage statement or other mortgage related letters. Use our online request form.
Important
An Early Repayment Charge applies on some mortgages. You may have to pay an Early Repayment Charge if, during your Early Repayment Charge period, you repay more than 10% of your mortgage or switch to a new mortgage deal.
