Overpayments

An overpayment is any additional payments you make over your contractual monthly mortgage payment. These overpayments can either be a one off lump sum or a regular overpayment made throughout the year.

Overpaying on your mortgage means you can save money on the total amount of interest you pay and potentially clear your mortgage balance quicker.

Before making an overpayment

You may be charged an early repayment charge (ERC) if you pay over your overpayment allowance. Find out what your overpayment allowance is using the table below or refer to your original mortgage offer.

Product Type Overpayment Allowance
UCB fixed rate mortgage products Typically 10%, but refer to your mortgage offer
UCB Managed Rate or Variable Rate mortgages Unlimited

There may be some instances where you may not have the overpayment feature on your mortgage - check your original mortgage offer to confirm.

Product features

When you make an overpayment it goes into an overpayment reserve and it’s used to reduce the interest you pay on your mortgage balance. Some of our mortgage products allow you to overpay and borrow back these funds later on. Check your mortgage offer to see whether you have this product feature, and if you do, you can overpay knowing you can access these funds back if you need to.

How will overpayments affect my mortgage?

We calculate the interest on your mortgage daily so all overpayments will reduce the interest you pay the following day.

  • For overpayments of less than £500 per month:

We’ll reduce your minimum monthly payment at the next natural recalculation point, i.e. an interest rate change or annual recalculation.

  • For single overpayments of £500 or more per month:

We'll automatically reduce your minimum monthly payments the following month, unless you tell us otherwise.

How to make overpayments

We can only accept payments from bank accounts that match the name(s) on the mortgage. Any third-party payments received will be returned.