Managing your mortgage payments

We offer different types of mortgage products with different interest rates. With some of these there might be a charge if you repay all or part of your loan within a certain period; we call these early repayment charges. Your offer letter will give details of any early repayment charges that apply to you.

We will apply an early repayment charge if, before the end of the early repayment charge period you:
 

•  repay all or part the loan
•  ask and we agree to transfer all or part of your loan to a new mortgage product.

The charge will never be more than the maximum amount set out in your offer letter and Mortgage Illustration and will be based on:
 

•  whether you repay all or part of the loan
•  the amount you owe when you make the payment.

If you request a redemption statement, we recommend you do not make any payment before the date on the statement as this could incur a charge.

Yes. Currently, as a concession, in each calendar year you can make regular or lump-sum overpayments of up to 10% of the amount owed at 1st January without having to pay an early repayment charge. (This is for any product where an early repayment charge applies).

If the total amount you overpay during the year exceeds 10%, we will only charge you an early repayment charge on the proportion you overpay above 10%.

If you have taken a Covid-19 related payment holiday and are making an overpayment to get back on track, as a special concession you won’t have to pay an early repayment charge, and it won’t count towards our 10% early repayment charge concession.

If you then repay the loan in full within six months of making a regular or lump-sum overpayment, we will require you to pay the full early repayment charge, including the portion we previously did not charge.

Remember, we can change or withdraw our 10% early repayment charge concession , so if you decide you want to make regular or lump-sum overpayments, it’s always a good idea to contact us and check if the policy has changed. We will give at least 3 months' notice before withdrawing or reducing the concession.

If you are moving home and can take the product rate with the early repayment charge with you to a new mortgage, you will not have to pay the early repayment charge. This is sometimes known as porting.

This example is based on 5 full or part years remaining, so a 5% charge is applied. If you had 3 full or part years remaining, a 3% charge would be applied.
 

You can make a one-off lump-sum overpayment by making a separate payment.

You can do this by calling into your local branch or use our contact form where we’ll ask if you want us to work out a new monthly payment on your reduced balance. We will not automatically recalculate your monthly payment. If you would like us to work out a new monthly payment, please contact us. Even if we don’t work out a new monthly payment for you, we will reduce the interest we charge by calculating it on the reduced balance.

Making a lump-sum overpayment will reduce the amount of interest you will pay us over the life of the mortgage because you are reducing the amount you owe.

If interest on your mortgage is charged using our Daily Interest method, we will stop charging you interest on the amount of the lump-sum overpayment on the day we apply the money. 

You need to tell us if you want us to use the money to reduce the monthly payments by keeping the mortgage term the same.

If you would like to reduce the remaining mortgage term you will need to speak one of our Mortgage Arrangers, who will discuss your needs and circumstances. 

If you have an interest-only mortgage, you can ask us to reduce the mortgage term but only if you can show us that your repayment plan(s) to repay the loan at the end of the term will provide enough money to do so sooner.

We offer different types of mortgages with different rates. With some of our mortgages, there may be a charge if you repay all or part of your mortgage within a certain period of time. We call these 'Early Repayment Charges' (ERCs).

You may have to pay anERC if you are making a lump-sum overpayment during an early repayment charge period. Your offer letter will tell you if ERCs apply and how long for. If an ERC is payable, we will deduct it from your overpayment.

If we have an ERC concession when you make your lump-sum overpayment, you will pay an ERC on only the part of the lump sum that exceeds our concessionary limit.

Remember: if you make regular overpayments during the year, these will count towards any early repayment charge concession.

You may be on previous charges which do not allow overpayments. The ERCs for agreements that do not allow overpayments are:

‘Thirty days’ interest for every whole or part year remaining of the outstanding Fixed Rate period. The minimum charge is 90 days’ interest, the maximum charge is 1% of the outstanding principal per full or part year remaining. Maximum of 1.5% in the final year.’

If an ERC applies, and you're on the new Terms and Conditions, we allow you to overpay up to 10% of the amount you owed at the 1st January within that calendar year, without having to pay the ERC.

For example, if your mortgage balance was £100,000 on the 1st January, you could overpay up to £10,000 (i.e. 10% of £100,000) that year without being charged any fees.

If the total amount you overpay during the year goes above 10%, we’ll only charge you an ERC on the amount you overpay above 10%.