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 would like further information, please contact us 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 will use your last instruction, if less than 12 months old. If you haven't given us an instruction in the last 12 months, we will treat your extra payment as an overpayment regardless of the value (read more about 'How overpayments work').
You must let us know which sub‐account you would like us to apply your capital repayment to. Your mortgage account is likely to be split into sub‐accounts if you have taken out a further advance or your mortgage consists of both interest‐only and repayment ‐ please refer to your annual mortgage statement for details of this.
It is important that you let us know which of your mortgage sub‐account(s) you want to credit the capital repayment to. If you do not give us specific instructions we will treat your extra payment as an overpayment regardless of the value. We will credit the payment between sub‐accounts as we reasonably consider appropriate, subject to any regulatory requirements. If you would like more information about how we have processed your payment, please ask us.