This page includes information on first payments, overpayments, including Early Repayment Charges (ERCs), criteria and exceptions.
How we'll calculate interest on your clients first payment
The first payment will total more than the regular monthly payments. This is because the first payment covers previous interest from the date the account goes live to the date of the first regular payment being due.
For example, if your client completes on 18 April their first payment will include interest charged from the day funds are released to the end of that month, plus interest for the following month. They'll need to consider this when setting a completion date.
Information
Assets held by the customer for repayment of the mortgage are not acceptable where it's denominated in a currency other than pounds sterling (GBP).
Early Repayment Charges (ERCs)
If your client’s mortgage is with The Mortgage Works, Derbyshire Home Loans or E-Mex Home Funding and is on a Managed Rate or Variable Rate, they can overpay as much as they like, there’s no ERCs.
There are other mortgage products that are on fixed or Lifetime Variable rates, which will usually have an overpayment allowance of 10% a year. Some of our products do have a different allowance. To find out how much they can overpay as a regular or lump sum payment (without an ERC charge), your clients can contact us on 0345 606 40 60.
We won't charge your ERCs, if your clients choose to make an overpayment within the last month of their product term.
Overpayments
Unless you let us know, we’ll apply your client’s overpayment to their mortgage using the following principles in this order; providing they're within their 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).
We can only accept payments from bank accounts that match the name(s) on the mortgage. We'll return any payments made that don’t match the name(s) on the mortgage.
Your client can make lump sum or regular overpayments of up to 10% of the initial mortgage balance in each 12-month period from the anniversary of completion, or the anniversary of the most recent product switch date, without having to pay any ERCs. This isn't available if the whole loan is being repaid or security released.
Should your client wish to overpay more than 10% and not be subject to ERCs, they'll need to be on the standard variable rate or within the last month of their product term.
Making a one-off overpayment
Example
With a one-off overpayment:
- If they make an overpayment of £5,000 on 19 June, the overpayment is credited to the account
- From 20 June, we'll reduce the mortgage balance, and reduce the interest due at the end of the month
- On 1 July, we'll calculate the interest due for the month of July, based on the reduced mortgage balance
- Their monthly payments due are usually re-calculated.
Online
Your clients can use our bank details to transfer money online. Please ensure you input the correct details.
Your clients will need to use their mortgage account number as the reference.
| The Mortgage Works mortgages |
Derbyshire Home Loans Ltd mortgages |
E-Mex mortgages |
|
Account name: The Mortgage Works UK PLC
Sort code: 20-12-04
Account number: 30813230
Account type: Business
|
Account name: Derbyshire Home Loans Limited
Sort code: 20-12-04
Account number: 30874620
Account type: Business
|
Account name: E-Mex Home Funding Limited
Sort code: 20-53-85
Account number: 53928446
Account type: Business
|
Repaying part or all of the mortgage early
If your client decides to repay all or part of their mortgage early, an ERC may apply. We'll base the ERC on the type of interest rate your client has, the amount they're repaying and the date they took out their mortgage.
Capital repayment allowance
Your client can make lump sum or regular overpayments of up to 10% of the initial mortgage balance in each 12-month period from the anniversary of completion, without having to pay any ERCs. This isn't available if the whole loan is being repaid or security released.
Assets held by the customer for repayment of the mortgage are not acceptable where it's denominated in a currency other than pounds sterling (GBP).
