Although the benefits of your overpayment will immediately take effect, we visibly update your account depending on how much you pay in the following ways:
- £500 or more, we'll recalculate your monthly payment the following month*
- For amounts less than £500, your repayments will be recalculated throughout the year, if there’s been a rate change for example. We’ll inform you by letter when this happens. Recalculations will also appear on your annual mortgage statement.
*We automatically reduce your payments. But if you have a capital repayment mortgage, you can choose to keep your payments the same and reduce your mortgage term instead. You can also decide to do ‘nothing’, this means we won’t recalculate your payments or term from the following month and you won’t receive a letter each time you overpay. If you do this, your payments will be recalculated throughout the year, if there’s been a rate change for example.
You can set up or change these preferences at any time. You can tell us via the Internet Bank or give us a call on 0800 30 20 11.