How do overpayments affect my mortgage?

How do overpayments affect my mortgage?


Lump sum overpayments are a great way of reducing the interest you pay over the lifetime of your mortgage. They are payments you can make in addition to your monthly payment as and when you want to. You can also benefit from reducing your monthly payment to put a little extra in your monthly budget. Use our overpayment calculator(opens in a new window) to see how overpayments could impact your mortgage.

Making payments online is easy, and the quickest way to get your money into your mortgage account. You’ll see lots of useful information to help you decide how much to pay, and what your balance and monthly payments will be if you continue to make the payment. Once your payment is made, you’ll receive email confirmation to help you keep track.

If you have a fixed interest rate or tracker product, you’ll see how much you can overpay before an early repayment charge applies in your current allowance period. If you are on our standard variable rate, you'll see that you can overpay as much as you like without an early repayment charge.

How to make online payments

Just use our self service platform 'Manage your Mortgage'. You can find it in the RBS app or Digital Banking. If you haven't used them yet, here's some guidance (opens in a new window) on how to access them. It doesn't matter whether you have other RBS accounts or just a mortgage.

If an app isn't for you, you can also use Manage Your Mortgage (opens in a new window), where you can just see your mortgage account. Whichever you use, the payment is usually applied within a few hours.

Things to consider

  • Each lump sum overpayment can be as little as £1 or as much as £99,999
  • If you pay £1000 or more, your monthly repayment will be recalculated over your remaining mortgage term
  • The term of your mortgage won't change when you make a lump sum overpayment, a separate application is required which carries a small fee. To find out more please contact our Mortgage Team via online chat in Manage your Mortgage(opens in a new window) , who'll be happy to help you

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