Overview

Frequently asked questions

Frequently asked questions

If you’re on our Base Mortgage Rate (BMR), Standard Mortgage Rate (SMR) or on some tracker products you won’t be charged for making an overpayment. If you’re on a fixed or tracker mortgage you may be charged an Early Repayment Charge (ERC) for making an overpayment.

If your fixed or tracker mortgage product was reserved before 29 May 2013, you can make overpayments of up to £500 per month without being charged an ERC. Any overpayments of more than £500 per month will be charged an ERC on the whole amount.

If your fixed or tracker mortgage product was reserved on or after 29 May 2013 you’re allowed to make overpayments of up to 10% per year of your original mortgage loan amount. Any overpayments over the 10% allowance will be charged an ERC on the amount above the allowance, not the total overpayment. The year begins on the anniversary your mortgage started.

Any overpayment of £1 or over is deducted from your balance immediately and we’ll reduce the interest you pay the next day. This means you’ll pay less, and is a great way for you to save money over the term of your mortgage.

We automatically reduce your monthly payments rather than reduce the time you have left to pay on your mortgage. You can change this at any time if you have a capital repayment mortgage online or by calling us calling us on 0800 30 20 11.

Once you’ve built up an overpayment reserve you can choose to:

  • Underpay - You can use your overpayments to underpay in the future. To arrange an underpayment period please call us on 0800 30 20 11, send us a secure message or visit us in branch.
  • Borrow back - If you reserved your product before 4 March 2010 you may be able to borrow back all or part of your overpayment reserve (subject to an eligibility assessment). To arrange this please call our specialist team on 0800 464 3044.
  • Reduce term - You can use your overpayments to reduce your term. You can set the preference on your mortgage to reduce your term when you overpay by £500 or more, or your payments are recalculated for another reason (capital repayment mortgages only).

Most former Portman mortgages have ended now. However, if you took out your mortgage before 28 August 2007 and your original deal term hasn’t expired yet, you may be able to make limited overpayments. 

The amount you can overpay in any 12 month period, before an Early Repayment Charge (ERC) is payable, is usually restricted to a certain percentage of the loan. Please refer to your original mortgage offer for details.

If your mortgage was regulated by the Consumer Credit Act at the time you took it, you won't be allowed to make overpayments.

Any overpayment reserve you have built up will be shown in your annual mortgage statement but you can find out at any time by calling us on 0800 30 20 11.