We calculate the interest on your mortgage daily so all overpayments will reduce the interest you pay the following day.
For overpayments of less than £500 per month:
We’ll reduce your minimum monthly payment at the next natural recalculation point, i.e. an interest rate change or annual recalculation.
For single overpayments of £500 or more per month:
We'll automatically reduce your minimum monthly payments the following month. You can change your preference to one of the below:
- Reduce your monthly payments (default option)
- Pay off your mortgage earlier by reducing the term (excluding Interest Only)
- Keep both the payments and term the same, your payments will reduce at the next natural recalculation point