If your interest rate and mortgage payment have gone down, you might want to take advantage of the situation and pay some extra off your mortgage. You could:
Whatever you decide to do, it would mean that you pay less interest overall.
If I make regular overpayments how will they affect my mortgage?
Regular overpayments will reduce the balance and the interest you're being charged will go down.
If you'd like to make regular overpayments by keeping your monthly payment the same, or even increasing it, you can let us know by using our downloadable form .You can also use the form if you want to change or cancel any existing overpayments you are already making.
You can pay lump sums off your mortgage whenever you want. Please note that in some cases a small administration fee or early repayment charges may apply.
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The 10% overpayments limit is a concession and could be withdrawn at any time.