How can I reduce my mortgage?

Interest is calculated on the mortgage balance owing at the end of the previous month. Any payment that is in excess of your normal monthly payment will therefore reduce the amout of interest charged in the month following the payment.

Overpayments

You can make overpayments over and above your regular monthly amount at any time. By making regular overpayments you could significantly reduce your mortgage term and save on interest charged.

You can make overpayments by cash or cheque, or you can instruct your bank to increase your monthly payment if you pay by standing order. If we collect your monthly payment by direct debit, just advise us of the extra amount you would like to pay and we will automatically collect the increased amount

Lump Sum Overpayments

These are lump sum payments in excess of £500 above your normal monthly payment. If you make a lump sum overpayment, you should advise us how this lump sum is to be treated by completing our Lump Sum Overpayment Guide

If you do not advise us, we will assume that your monthly payment is to be re-calculated on the reduced balance outstanding over the remaining term. We will then inform you in writing of your reduced monthly payment.

Paying off (redeeming) your Mortgage

If you need to know the total cost to repay your mortgage please call us on 01384 216261 and a written statement will be provided. There may be a charge - please view our Tariff of Charges.

Early Repayment Charges

Some of our mortgage deals may include early repayment charges if overpayments are made or the mortgage is repaid in full. (Please refer to your Mortgage Offer or contact us to check the conditions applicable to your mortgage.)

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