In the current economic climate, more people are looking to reduce their debt. One easy way to do this is by making a one-off payment.
One-off lump sum payments are sometimes known as capital repayments. If you reduce your mortgage by making a capital repayment, you’ll have the option either to reduce your monthly payment or, if you’ve got a repayment mortgage, to reduce your mortgage term. It’s best to let us know which option you prefer, but if we don't hear from you we’ll recalculate your monthly payment – except if your capital repayment is under £1,000 and you’ve made a capital repayment before. Then if we don’t hear from you we’ll make the same change as we did last time. To let us know what you want to happen, visit your local branch or call 0845 603 1637.
Please bear in mind that extra payments on certain mortgages may incur an early repayment charge. If you’re on a fixed rate you will still be able to pay up to 10% each year before an early repayment charge applies (see below for more details).
How do I make a one-off payment?
You must provide details of your name, mortgage account number and, if your mortgage is made up of more than one part, include details of which individual sub-account you’d like this payment to be applied to.
You can pay your amount at your nearest C&G branch.
An early repayment charge applies for some mortgage deals. This means you will face a charge if you make extra payments or change more than a certain amount of the loan's capital balance (as at 1 January) in any one year.
The limit on any extra payments you can make each year before the charge applies is 10% of the mortgage balance. This means if you have a mortgage subject to an early repayment charge you can pay up to 10% of your mortgage balance before incurring the charge, unless you go on to repay or change the rest of the loan within the next six months. The charge varies, depending on how long you have left on your mortgage deal.
The 10% overpayments limit is a concession and could be withdrawn at any time.
