Flexible features of our mortgages

We offer a range of products with flexible features, built in to give you a wide range of options to manage your finances and payments. Details of your mortgage features can be found in your most recent offer letter. Conditions and restrictions may apply to these features.

Overpayments

Overpayments allows you to pay more than your monthly payment. By regularly making overpayments you could reduce the term of your mortgage. Interest will be calculated on the reduced balance.

Overpayment amount Interest charged on reduced balance? Monthly payment automatically reset? Early repayment charge
Under £500 Yes No None payable
£500 Yes Yes None payable
Over £500 Yes Yes May apply*

*Please refer to your most recent mortgage offer for full details of overpayment limit and Early Repayment Charge.

Borrow back

Borrow back facility is available provided you have previously made sufficient overpayments. Perhaps you need access to extra cash quickly if there are emergency repairs required to your rented property. The minimum withdrawal is £500 and we'll need 5 working days notice.

Any overpayment received requires 6 working days' notice to clear before it can be borrowed back.

Please note that borrow back is not included in our current product range, therefore, if you choose to switch products this feature will not be available.

Underpayments

Underpayments are available if you need to pay less than your agreed monthly payment, provided you have previously made sufficient overpayments. Perhaps you have a variable income or you're self-employed, working in seasonal industries or going on maternity leave. If you're a landlord, you could make use of previous overpayments to cover when your property is unoccupied by tenants.

Payment holidays

Payment holidays are available if you wish to miss a monthly mortgage payment completely, providing you have previously made sufficient overpayments. Perhaps you want to take a break from work or you want to sell a property and don't want to make any mortgage payments until the property is sold.

Additional flexible features on Lifewise and Enterprise products

  • Unlimited overpayments are available if you have extra cash. Perhaps an annual bonus could be used to offset against your mortgage. If you're a landlord and you've recently sold a property in your portfolio, you can use the profit to reduce your mortgage on your property. You can overpay by any amount, however, an early repayment charge may be payable on certain Enterprise and Lifewise products if the mortgage is fully redeemed or switched to another product during the benefit period. Please refer to your most recent offer letter for full details.
  • Immediate drawdown is available if you have a pre-agreed advance in place. You can access additional funds using the drawdown facility to free up money quickly. Perhaps a baby is on the way and you need to extend the home. Or if you're a landlord, you want to make improvements to a current property. The minimum withdrawal is £500 and it can be activated within 3 years from the start of your mortgage.

Please note that immediate drawdown is not included in our current product range, therefore, if you choose to switch products this feature will not be available.

The benefits of flexible features

The scenarios above demonstrate how flexible features could benefit people's individual circumstances. Below is an example of how our overpayments feature could actually affect your mortgage with us.

The example below uses a capital repayment mortgage of £140,000, at an interest rate of 6.00% (APRC 6.2%), over a 25 year term. The figures used and the benefits shown may not apply to all products.

  • Regular monthly overpayments – Making regular overpayments of £100 for the whole term of your mortgage could save you just under £30,000 in interest payments, and reduce your mortgage term by approximately 5 years.
  • Lump sum overpayment – Making a lump sum overpayment of £20,000 at the beginning of year 3 could save you just under £46,000 in interest payments, and reduce your mortgage term by 6 years.