An overpayment is any extra payment you make over your contractual monthly mortgage payment. Overpayments can either be a one-off lump sum or a regular overpayment made throughout the year.
Overpaying on your mortgage means you can save money on the total amount of interest you pay and potentially clear your mortgage balance quicker.
Some of our mortgages have limits, known as an allowance, on how much you can overpay. If you go over this allowance, you may have to pay an Early Repayment Charge.
If your mortgage is with The Mortgage Works, Derbyshire Home Loans or E-Mex Home Funding and is on a Managed Rate or Variable Rate, you can overpay as much as you like, there’s no Early Repayment Charge.
However, other mortgage products that are on fixed or Lifetime Variable rates usually have an overpayment allowance of 10% a year. A few of our products do have a different allowance. 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 an Early Repayment Charge.
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:
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.
We can only accept payments from bank accounts that match the name(s) on the mortgage. Any payments made that don’t match the name(s) on the mortgage will be returned.
Use our bank details to transfer money online. Please ensure you input these details correctly.
Please use your 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 |
Account name: Derbyshire Home Loans Limited |
Account name: E-Mex Home Funding Limited |
Make cheques payable to The Mortgage Works. Write your full name and mortgage account number on the back, and send them to:
The Mortgage Works
Northampton Administration Centre
Kings Park Road
Moulton Park
Northampton, NN3 6NW
Contact us to set up or change a regular overpayment.
If you are changing a regular overpayment, we’ll need to know 10 days before your next payment is due.
