Mortgage overpayments and underpayments

Changing your payments

Paying more into your mortgage account than you need to can help you pay less in the long term and could set you up to make underpayments – find out how.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Overpaying and underpaying your mortgage simply means paying more or less into the account than your normal monthly payment. In this guide, we’re going to explain when and how you can make overpayments, and tell you about the benefits paying more can bring.

We'll also talk about underpayments – but this feature isn't available on all of our mortgages. You'll need to log in to Online Banking if you’ve registered, or check your mortgage terms and conditions, to see if that feature is available to you. Please remember that you must always make your normal monthly payment unless we have agreed that you can make underpayments. 

The benefits of mortgage overpayments

Overpayments help you save money in the long term. That’s because the extra money reduces the balance that we charge interest on, so you pay less interest over the term of the mortgage. But it won’t change the amount of your usual monthly payment – that stays the same.

Another potential benefit is that making overpayments could enable you to make underpayments at times if your mortgage includes an underpayment feature – but only with our agreement, as we’ll explain shortly.

Overpayment limits and early repayment charges

Before making an overpayment, please check your mortgage documents to make sure that you’re able to do so. Many of our mortgages let you overpay by up to 10% of your balance in every 12-month period. Some let you overpay by more, while others (like our 10-year fixed rate deals) have lower overpayment limits.

Paying more than your limit means you may need to pay an early repayment charge. If you’re in any doubt about this, call us1on 0800 197 1081. 

How to make overpayments

You can make single or regular overpayments. There are 2 ways to make overpayments.

  • Online, if you’re registered for Online Banking
  • Call us1 on 0800 197 1081

Getting agreement to make underpayments

You need to call us and get our agreement before you can make any underpayment. That’s so we can talk you through the options and limits. And if you’re thinking about underpayments because you’re worried about money, it’s better to call us to talk about it. The sooner we talk to you, the more options we can offer to help you manage through any difficulties.

You’ll also need to have made overpayments in the past that will cover any underpayments you want to make. We’ll explain what this means for you when you call us on 0800 197 1081.

Are overpayments right for you?

Reducing your mortgage balance can be a good way to make use of any spare money you have, but it’s a good idea to ask yourself a few questions first.

Do you have other debts that could be costing you more, such as a credit card balance or overdraft? If so, then it may be better to use your money to deal with those debts.

Is it possible that you could need that money for an emergency? Once you’ve made an overpayment, you can’t get that money back. If you think you’ll need access to cash, then putting some or all of your spare money into a saving account or ISA might give you more flexibility.

Manage your mortgage online

See what you can do online and with our app

Make changes easily and securely in Online Banking and see your mortgage details in the Barclays Mobile Banking app.

Help with mortgage payments

Worried you can’t afford your payments?

If you're concerned that you won’t be able to make your mortgage payments, contact us right now to find out about the various ways we can help you.