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. However, we will not treat this as a capital repayment unless you specifically ask us to and the terms and conditions of your mortgage allow it. This means that your payments will not automatically be recalculated.
If your mortgage is on our annual or half‐yearly interest scheme, your mortgage balance will be reduced immediately when we receive your overpayment. We will not automatically recalculate the interest charged until the following 1 January, or for half‐yearly interest scheme accounts either 1 January or 1 July, whichever applies to you.
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 between sub‐accounts, subject to any regulatory requirements.
If you would like more information about how we have processed your payment please call us.
Please remember that additional payments are subject to your existing mortgage terms and conditions which may include early repayment charges.
If your mortgage account is in arrears, additional payments may be processed differently.