Flexible Benefits - Overpayments
Your client can make additional payments to their mortgage account whenever they like and benefit in a number of ways:
- save interest straight away - any money overpaid is deducted from the balance the next working day
- pay the mortgage off earlier (if a repayment mortgage). For example, if your client always overpays by £75 a month on a £80,000 repayment mortgage with an original term of 25 years, on our Lifetime Tracker, they could save over £24,000 and pay their mortgage off six years earlier. (Figures correct as at 1 May 2008).
- borrow back the money overpaid at any time »
- reduce monthly payments (underpay) in the future »
Our fixed rate and tracker mortgages have limited flexibility. Your client can overpay by up to £500 per month without charge. If your client overpays by more than this there will be an early repayment charge.
