Making overpayments

An overpayment is any additional payment you make over your regular monthly contractual payment. The overpayment could be a one-off lump sum payment or an overpayment you make regularly throughout the year.

Is it worth overpaying on your mortgage?

Making additional overpayments towards your mortgage means you will pay less interest overall on the money you borrowed and potentially clear your mortgage balance more quickly than the original mortgage term you agreed.

This could be a good way to use any spare money you may have, but it’s worth considering if you have any other debts that could be costing you more, such as credit cards or personal loans, before you make an overpayment on your mortgage.

Once you’ve made an overpayment, you can’t get that money back. So, if you think you might need the money for any future emergencies, you may want to hold on to it.

How much should I overpay by?

Any regular overpayment can help you pay less in the long term. If you want to understand how much less, there are a few independent calculators that can show you.
The Money Savings Expert has a useful overpayments calculator that will show the impact of making regular overpayments or lump sum payments for the remaining term of your mortgage.
You will need to know your outstanding mortgage balance, the remaining mortgage term, and your current monthly payment amount. Then if you insert the amount you would like to overpay and how often you intend to make the payment, the calculator will show you how much you could save in interest and how much earlier your mortgage will be paid off. Find out more here.
If you’re not sure whether to save any spare money or overpay on your mortgage, the calculator will also let you compare overpaying on your mortgage with a savings account.
Are there any overpayment limits?

There are no limits as to how much you can overpay on your mortgage. However, some mortgages will have different rules about how the overpayments will affect the mortgage. For example, although any overpayment means you will pay less interest, you may need to overpay by a minimum amount before you can ask for your regular monthly payment to be adjusted.
How can I overpay?
If you decide to overpay, you could make regular overpayments via the phone, online banking, using our online services, or you could set up a Standing Order. Things to consider:
- There are some daily/ monthly limits that restrict how much we can accept via the phone, or our online services. If you’re unsure, our team can help you.
- If you’d like to set up a Standing Order, or make Faster Payments via online banking, and you need our current bank account details, please call us on 0333 300 0426.
- If you prefer to make overpayments as and when you have spare cash, you could also make one-off lump sum payments.
- Depending on the overpayment amount, we may ask you for evidence of the source of funds. This is so we comply with the anti-money laundering legislation. For example, we may ask you for bank statements that will help us identify where the money came from.
Remember to quote your mortgage account number as a reference when making any overpayment.
How will overpayments affect my mortgage?

Any overpayment you make means you will pay less interest. We calculate interest on your mortgage daily, so any overpayments will reduce the interest you pay from the following day. However, we will not adjust your regular monthly payment unless you ask us to.
If you have been overpaying and you would like us to adjust your regular monthly payment, please let us know. We’ll check your original mortgage conditions and let you know if there is a minimum amount and if we need confirmation in writing. Call us on 0333 300 0426 to find out more.