How can I reduce my mortgage?

Any payment that is in excess of your normal minimum monthly payment will reduce the amount of interest charged on your account. Interest is calculated on the balance outstanding on your account at the end of each month and debited on the 1st.

Lump Sum Overpayments

These are lump sum payments in excess of £500 or your normal minimum monthly payment, whichever is the higher . When you make a payment of this type, you should inform us (by completing the below link), so that we can ensure that it shows on your account as a Lump Sum Overpayment. We will automatically adjust your monthly payment and inform you of the reduced amount.

If you have a capital & interest (repayment) mortgage and you would like to reduce your mortgage term instead of your monthly payment, please let us know. Your monthly payment will still reduce but your account will be flagged to expect higher amounts and this will result in the reduction of your mortgage term. We normally review your account six months later and contact you to give you the opportunity to change your payments, if you wish.

If you have an interest only mortgage your monthly payment will be reduced.

Click for Lump Sum Overpayment request

Overpayments

You can make small overpayments at any time by cash or cheque, or you can instruct your bank to increase your payment if you pay by standing order. If you pay by direct debit, please advise us of the amount you would like to pay and we will automatically collect the increased amount. You will be charged less interest each month.
If you have a capital & interest (repayment) mortgage, your mortgage term will begin to reduce.
If you have an interest only mortgage your outstanding balance will be reduced.

Paying off (redeeming) your Mortgage

If you would like to repay your mortgage in full, contact us and we will prepare a redemption statement for you.

Fees and Penalties

Some types of mortgage may incur a penalty if you make capital repayments or if you pay off your mortgage in full within a certain period. If you are unsure, please contact us and we will confirm the terms and conditions of your mortgage. All mortgage redemptions will incur a £125 deeds sealing fee.

Early Repayment Charges

If your mortgage is subject to Early Repayment Charges (as shown in your mortgage offer) and the allowance of your current overpayment period has been or will be exceeded, charges may apply. Written confirmation regarding any charges will be sent to you before these are added.

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