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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.

Once you’ve made an overpayment, you can’t get a refund – and remember that you’ll need to make your monthly payments as usual.

How overpayments affect your monthly payments and mortgage balance

Every overpayment you make means you pay less interest overall on the money you borrowed from us. Overpayments do one of two things to your mortgage balance, depending on the amount.  

Overpayments higher than 3 times your usual monthly payment

These reduce your monthly payment. That means we recalculate your monthly payment but your term stays the same.

Overpayments lower than 3 times your usual monthly payment

These overpayments help you pay off your mortgage sooner but your monthly payment stays the same. They go into an ‘overpayment balance’, which we take into account when working out your interest charges. The overpayments build up to an amount that can help you pay off your mortgage sooner. It can also enable you to make underpayments in future, which we explain in detail below.

Revised monthly payment higher than expected?

When we work out your new monthly payment amount following a change to interest rates, the amount stored in your overpayment balance isn't taken into account – so your monthly payment may be higher than you expect.

If you want us to use all or part of your overpayment balance to reduce your monthly payments, please log in to Online Banking and start a web chat or call us1 on 0800 197 1081, so we can explain your options. Lines are open all the time, every day – except during the Christmas period, when they may be closed at off-peak times.

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. The documents also include details of any overpayment limit and early repayment charges you may have to pay. 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 us on 0800 197 1081. 

How to make overpayments

Register for Online Banking if you haven’t already.

Making a one-off overpayment

Transfer a payment from a current or savings account you have with us

Log in to Online Banking or our mobile banking app and choose 'Single overpayment'

Make a payment by debit card – but we can only accept up to 3 times your usual monthly payment that way

Log in to Online Banking or our mobile banking app and choose 'Make a debit card payment'

Transfer a payment from an account you have with another bank.

Log in to Online Banking to find the sort code and mortgage account number you’ll need to make your overpayment.

Making a regular overpayment

Set up a Direct Debit

Log in to Online Banking and select ‘Regular overpayment’

Set up a standing order

Log in to Online Banking to find the sort code and mortgage account number you’ll need to make your overpayment.

You can also call us on 0800 197 1081 to make overpayments.

Overpayment questions?

If you have a question about making overpayments or early repayment charges, you can log in to Online Banking and start a web chat, or call us1 on 0800 197 1081

Getting agreement to make underpayments

Underpayments aren’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. You’ll also need to have made enough overpayments in the past to cover any underpayments you want to make. 

If you’re eligible on both points, call us on 0800 197 1081 to discuss making overpayments. Please remember that you must always make your normal monthly payment unless we have agreed otherwise. And if you’re thinking about underpayments because you have money worries, 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. 

Are overpayments right for you?

If you’re unsure whether making overpayments is right for you, please call us on 0800 197 1081 to book an appointment to speak to one of our mortgage advisers.

If you have any outstanding payments or charges on your account, call us on 0800 022 4022 before making any overpayments. Lines are open Monday to Friday, 8:30am to 5.30pm and Saturday 9am to 1pm.

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.