If the equivalent of three times your contractual monthly payment is £1,000 or more then:

• Any extra payment of at least three times your monthly payment will be treated as a capital repayment.
• Any extra payment less than three times your monthly payment will be treated as an overpayment.

If the equivalent of three times your contractual monthly payment is less than £1,000 then

• Any extra payment of £1,000 or more will be treated as a capital repayment.
• Any extra payment less than £1,000 will be treated as an overpayment.

Please note, if you have an interest‐only flexible drawdown mortgage, any additional payment(s) over £500 will automatically be treated as a capital repayment.

Daily or annual interest?

If your mortgage is on our daily interest scheme we will credit your overpayment to your mortgage account immediately, which means you will be charged less interest overall. If you'd like this treated as a capital repayment and your monthly payments recalculated (and your mortgage terms and conditions allow it), you'll need to explicitly tell us.

If your mortgage is on our annual or half‐yearly interest scheme, your mortgage balance will be reduced as soon as we receive your overpayment. For annual interest, we'll recalculate the interest charged on 1 January.

For half-yearly interest accounts, we'll recalculate the interest charged on 1 January or 1 July, which ever comes first.
 

Other information about overpayments

If your mortgage is split into 'sub‐accounts' and you do not tell us which sub‐account(s) you would like us to apply your overpayment to, we will credit the payment equally between sub‐accounts, subject to any regulatory requirements.

If you would like more information about how we have processed your payment please call us on 0800 121 6162.

Please remember that payments are subject to your existing mortgage terms and conditions which may include early repayment charges (ERC).

If your mortgage account is in arrears, additional payments may be processed differently.

Have an interest‐only mortgage?

Your capital repayment will reduce the balance of your mortgage. This in turn will reduce the interest we charge and therefore your contractual monthly payments will go down from the following month onwards.


Have a repayment mortgage?

Your capital repayment will reduce the balance of your mortgage and this in turn will reduce the interest we charge. You can then choose to either reduce your contractual mortgage payments from the following month onwards, or reduce the term of your mortgage, which means you will pay off your mortgage in a shorter period of time. If you'd like further information, please call us on 0800 121 6162 and our advisors will be happy to help you.

Letting us know how you would like us to treat your repayment

You must let us know how you would like us to treat your repayment. If you don't provide us with specific instructions we'll use your last instruction, if less than 12 months old. If you haven't given us an instruction in the last 12 months, we'll treat your extra payment as an overpayment regardless of the value.

Sub-accounts

If you've taken out a further advance or additional borrowing or your mortgage is made up of interest-only and repayment you may have sub-accounts on your mortgage - your annual mortgage statement will have the details. 

If you have sub-accounts on your mortgage, you will need to let us know which sub-account you would like the capital repayment applied to as each sub-account may have different terms and conditions.

If you don't give us specific instructions we'll treat your extra payment as an overpayment regardless of the value. We'll credit the payment between sub‐accounts as we reasonably consider appropriate, subject to any regulatory requirements. If you'd like more information about how we have processed your payment, please ask us.

Early Redemption Charges
 

If you're repaying all, or part of your mortgage, there may be a fee if your mortgage is subject to an early repayment charge (ERC) . Your original mortgage offer and your annual mortgage statement will tell you if this is the case.
 

Exit Fee
 

When you fully pay off (redeem) your mortgage we charge a mortgage exit fee, as shown in your mortgage offer. This fee will be waived if there is less than one year left to run on your entire mortgage at the time of redemption. The fee amount is fixed for the term of your mortgage, except where you ask us to arrange additional borrowing, switch your mortgage or arrange a transfer of equity (when, if applicable, it'll change to the prevailing fee at the time).


This fee is refundable if you take your next mortgage with us within six months of redeeming the original mortgage account (12 months if your mortgage includes a former Stroud & Swindon Building Society scheme).