Making overpayments reduces your client's mortgage balance, helping them pay less interest.
With single overpayments, they can:
reduce their mortgage term, or
lower their monthly payments.
Regular overpayments will reduce their mortgage term.
If your client wants to make a one-off overpayment with their product transfer, without paying an early repayment charge (ERC) or affecting their 10% overpayment allowance, see our product transfer page.
With single overpayments, they can
reduce their mortgage term, or
lower their monthly payments.
Regular overpayments will reduce their mortgage term.
If your client wants to make a one-off overpayment with their product transfer request without paying an ERC or affecting their 10% overpayment allowance, see our product transfer page.
How to make overpayments
Your client can make overpayments through Mobile or Online Banking.
They have 3 options.
Your client can make a one-off payment using a debit card in their name. They can also use money they have in a Santander current or savings account.
Your clients can increase their existing Direct Debit to pay more on top of their monthly mortgage payment. Once set up, they can amend or cancel it online at any time.
Your clients can also do a combination of the two. They can make single overpayments, even if they already have a regular overpayment arrangement in place.
If your client has an interest-only mortgage, they can set up overpayments online. These can only be used to reduce monthly payments.
To reduce the mortgage term, they'll need to get in touch with our mortgage team.
How much can they overpay?
The amount your client can overpay depends on whether they're on a fixed-rate mortgage. If your client isn’t on a fixed rate, they can make unlimited overpayments without paying an ERC.
Clients can overpay up to 10% of each fixed-rate loan balance per calendar year (January to December), without paying an Early Repayment Charge (ERC).
If they don't use their full 10% allowance in any calendar year, they won't be able to carry it over, into the new calendar year.
If they exceed their 10% allowance, an ERC will apply to the amount above the 10%.
Your client can check their remaining 10% allowance, and any ERC, through their Mobile or Online Banking. ERC details are also available in their latest mortgage offer and annual mortgage statement.
The 10% allowance can’t be used when repaying the mortgage in full or when arranging a new deal. Your client’s 10% allowance doesn’t reset if they transfer from one fixed rate to another.
Multiple loan parts with different product codes
The 10% allowance applies to each product separately.
Multiple loan parts with the same product code
The 10% allowance for each product can be combined and the overpayment allocated to individual loan parts, even if this means a loan part is fully repaid.
Loan part | Balance | Overpayment allowance | |
1 | £100,000 | M123R | Maximum £20,000. This can be allocated to loan 1 or 2, or split between both. |
2 | £100,000 | M123R | |
3 | £100,000 | K456V | Maximum £10,000. |
Total | £300,000 | Maximum £10,000. |
Overpayment calculator
Use our overpayment calculator to help when giving your clients advice.
Base the overpayment on your client’s new interest rate and see how it could affect their monthly payment or loan term.
Actual results may vary, depending on when the overpayment is made and when the new deal starts.
If you have a client that can’t make overpayments online, they should contact our mortgage team.
For more information, visit the Santander website.