Find out more about our payment flexibility - Watch the mortgage video
Hello, my name’s Holly, and I’ll be going through your options for paying extra into your mortgage to pay it off more quickly or to reduce your monthly payments. Lots of customers are asking us about paying more at the moment because interest rates are low.
We try hard to be as flexible as possible with the mortgages we have on offer. Life chops and changes in so many different ways that it makes sense to give people a range of options with their mortgage.
The options start with the different repayment methods, interest rates, fees and deal lengths we offer.
But, even when your mortgage is up and running, you’ve still got a variety of ways to move with the times. Here’s how…
All of these changes to how much you pay each month will have an effect on your mortgage balance. The mortgage balance is how much you owe overall. And the size of your balance affects how much interest you pay. More interest on a bigger balance, less on a smaller one. Just bear in mind that there can be an administration fee for making certain changes to your mortgage. But we’ll always let you know if you ask us to do something where a fee applies.
I’ll explain a bit more now about what happens if you make any extra payments to your mortgage. Remember, this can either be as a one-off lump sum or you can pay a bit extra on top of your mortgage payment every month.
One-off lump sums
Paying a one-off lump sum towards your mortgage will lower your mortgage balance. As a result we could recalculate your monthly payment so you pay less each month. Or, if you have a repayment mortgage, your other option is to arrange to pay your mortgage off sooner, in other words to reduce the term. This would mean that your monthly payments would stay the same.
You’d definitely need to tell us if that’s what you’d like to happen. In fact, whatever you decide, it’s really important that you get in touch with us by visiting your local branch, calling us or even requesting a callback.
Changing your mortgage term or asking us to recalculate your monthly payments straightaway, as soon as you’ve made the extra payment, are two of the occasions I mentioned earlier when there’s a small administration fee for the work involved.
If you’d like to find out more about lump-sum payments, please click the link below.
Making lump-sum payments
Paying a bit extra on top of your mortgage payment
The other way to pay less interest on your mortgage overall is to add a bit more each month to top up your usual payment. You can pay up to twice as much, and however much extra you pay, the amount of interest you’re being charged will go down. This reduction in interest will happen straightaway if your mortgage is a daily interest mortgage, which most C&G mortgages are.
We won’t recalculate your payments every time you make an extra payment. Instead, we’ll wait until there’s some other reason – like a change in the interest rate, for example.
If you’d like to find out more about regular overpayments, please click the link below.
Making regular extra payments
However you decide to set about it, paying more than you are required to will save you money.
Of course, if you’re lucky enough to win the lottery, you can repay all or a large part of your mortgage early. You can find out about Early Repayment Charges and all the information you need about additional payments, on this site. Once you’ve decided the right path for you, get in touch with us by using our online request forms for mortgages.
Thanks for watching this video, goodbye.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
