Making overpayments

An overpayment is any additional payment you make over your usual monthly mortgage payment. Overpayments can either be a one-off lump sum or regular payment made throughout the year.


Find out about:

How overpaying affects your mortgage

If you make an overpayment the amount you owe us will be reduced immediately and the amount of interest you pay will be reduced from the first day of the following month.

For example, with a one-off overpayment:

  • If you make an overpayment of £5,000 on 19 June, the overpayment is credited to the account
  • From 20 June the mortgage balance is reduced immediately, the interest due is reduced at the end of the month
  • On 1 July the interest due for the month of July is calculated, based on the reduced mortgage balance
  • Your monthly payments due are also usually re-calculated.

Tip:

Overpaying on your mortgage means you can save money on the total amount of interest you pay and potentially clear your mortgage balance quicker.

Early Repayment Charges

Some of our mortgages have limits on how much you can overpay. If you go over this allowance, you may have to pay an Early Repayment Charge.

  • Managed Rate or Variable Rate mortgages: You can overpay as much as you like, there's no Early Repayment Charge.
  • Fixed or Lifetime Variable mortgages: These usually have an overpayment allowance of 10% a year. A few of our products may have a different allowance. Please check your mortgage offer or most recent annual mortgage statement to find out how much you can overpay as a regular or lump sum payment without being charged.

Information:

If you make an overpayment within the last month of your mortgage term, there's no Early Repayment Charge.

How we apply overpayments to your account

Unless you tell us otherwise, we’ll apply your overpayment to your mortgage using the following principles in this order; providing you’re within your overpayment allowance(s):

1. Interest only mortgages.

2. Highest interest rate (where there is more than one account on the mortgage).

3. Highest balance (where there is more than one account on the mortgage).

Contact us if you’d like your overpayment to be applied differently.

How to make an overpayment

Before you start: You, or your Limited Company, must be named on the mortgage to make a payment.

One-off overpayments

Pay online

You can use our bank details to transfer money online. Please ensure you enter these details correctly.

  • Account name: The Mortgage Works UK PLC
  • Sort code: 20-12-04
  • Account number: 30813230
  • Account type: Business

Please use your mortgage account number as the payment reference.


Pay by cheque

Please make all cheques payable to 'The Mortgage Works'.  On the back, write your full name and account number and post to:

The Mortgage Works
Northampton Administration Centre
Kings Park Road
Moulton Park
Northampton, NN3 6NW

Your payment will be applied on the date we receive the cheque. We can't hold post-dated cheques.

Regular overpayments

To set up or change a regular overpayment, please contact us.

If you are changing a regular overpayment, we’ll need to know 10 days before your next payment is due.