Making overpayments on your buy to let mortgage

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.

Early Repayment Charges

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 on a Managed Rate or Variable Rate, you can overpay as much as you like, there’s no Early Repayment Charge.

However, other fixed or Lifetime Variable mortgages 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 within the last month of your mortgage term, there's no Early Repayment Charge. 

How overpayments affect 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.

How we apply overpayments to your mortgage

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 overpayments

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.

Making a one-off overpayment


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
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

By cheque

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

Making a regular overpayment

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.