Set up a regular overpayment

A regular overpayment is where you pay more than your normal mortgage payment each month.

Making regular overpayments will:

Reduce your mortgage balance
Save you interest

Important: You can’t get a refund on any overpayments you make.

How it works

Making overpayments will reduce your mortgage balance. Any overpayments won’t automatically reduce your mortgage term or monthly payment. But when we next recalculate your monthly payments, we’ll use your new balance. Your term will remain the same.

We stop charging interest on any amount you overpay by on the day we receive the payment. So, you’ll owe less and have less interest to pay.

As your balance goes down, so will your Loan to Value (LTV). Your LTV is how much you owe compared to the value of your home as a percentage. If your LTV is lower, you could be eligible to apply for lower rates if you switch to a new deal or remortgage to a new lender.

Overpayment limits and early repayment charges (ERCs)

Where ERCs apply, you can make overpayments of up to 10% of the amount owed as of 01 January. We call this your overpayment allowance, and it includes all regular and one-off overpayments you make during the year.

It can be easy to lose track of how much you’ve overpaid if you’re making regular overpayments. To find out how much of your overpayment allowance you have left, you can request it here or call us on 0345 603 1637. Our lines are open 8am - 8pm Monday to Friday and 9am - 4pm on Saturdays. We’re closed on Sundays and bank holidays.

If you have a hearing or speech impairment, you can contact us using the Relay UK service. There’s more information on the Relay UK help pages. If you’re Deaf and a BSL user, you can use our BSL SignVideo service.

How we calculate ERCs on overpayments

If you overpay more than 10% over the year, we'll only charge you on the balance you overpay above 10%.

As ERCs reduce through the life of your mortgage, it might be best to wait until your ERC ends or changes before you make a payment. For example, your latest offer letter could show your ERC rate will go down on 01 July. If you make your payment on 30 June, you’ll have to pay more.

If ERCs don’t apply to your mortgage

You can overpay as much as you like without being charged an ERC. But there might be other fees applied if you pay off your mortgage in full.

We can change your yearly overpayment allowance at any time

Please check before you make any overpayments. We’ll always give at least three months’ notice before we do this.

Learn more about ERCs

Your regular overpayment options

Choose one of these arrangements.

Standard arrangment

Fixed arrangment

Standard arrangment

With this kind of arrangement, you can choose the amount you’d like to overpay by each month. This will then be collected on top of your normal monthly payment.

For example, if your normal monthly payment is £400 and you choose to make a regular overpayment of £100, you’ll pay £500 in total. If your normal monthly payment changes to £500, you’ll pay £600 each month.

The total amount you have to pay each month can vary, so it’s worth considering if this option is right for you.

You’ll need to call us to apply overpayments to a specific sub-account

When choosing a sub-account, it’s worth thinking about its term, balance, interest rates, ERCs, and any other fees or charges that might apply.

Your overpayments will continue until you tell us you’d like to stop or amend your arrangement.

Fixed arrangment

This option allows you to choose a fixed amount to pay each month. This must be more than your normal monthly payment.

For example, if your normal monthly payment is £400, you can fix it at £500, meaning you’ll make a regular overpayment of £100. If your normal monthly payment changes to £350, your overpayment will automatically adjust to £150.

You’ll need to call us to set this up .

You can’t apply your overpayments to a specific sub-account with this kind of arrangement.

Your overpayments will continue until you tell us you’d like to stop or amend your arrangement. But if your normal monthly payment goes above your fixed amount, we’ll cancel it.

How to set up a regular overpayment

Before you start: You must be named on the mortgage to make a payment.

By Direct Debit expandable section
You can easily set up a regular overpayment by Direct Debit in Internet Banking. Simply log on to Internet Banking to find your mortgage and follow these steps:
- More actions
- Paying your mortgage
- Manage regular overpayment
Log on to Internet Banking

Once complete, we’ll send you a letter to confirm your arrangement.

Not registered? You can register here to view and manage your mortgage.

Otherwise, you’ll need to call us to adjust your Direct Debit.
By standing order expandable section
To make regular overpayments by standing order from another bank, you’ll need these details:
- Sort code: 30-00-00
- Account number: 00353019
- Account name: Lloyds Bank plc
For the payment reference, please input your mortgage account number, plus an extra ‘00’ on the end, so it’s 16-digits in total.

To make an overpayment to a sub-account, replace ‘00’ with the two-digit sub-account number instead. For example ‘02’. Visit How do I apply my overpayment to a specific sub-account? for more information.

What happens after you set up a regular overpayment?

If you set up your overpayments by Direct Debit

We’ll take your new monthly payment amount on your next due date. If your mortgage payment is due in the next seven days, we might not have enough time to update the amount. This means your new monthly payment will start the following month.

If you set up your overpayments by standing order

Standing orders are only sent on working days. Please allow up to three working days for your payments to reach us and appear on your balance. You won’t get any confirmation this has been received.