Making overpayments reduces your client's mortgage balance, so they'll pay less interest on their mortgage. They can choose between reducing their term or their monthly payments with single overpayments. Regular overpayments will reduce their term.
If your client wants to make an ERC-free overpayment with a product transfer request, please refer to the ‘ERC-free overpayment before a product transfer’ section on our Product transfers page.
If your client has a mortgage with us, they can make overpayments in Mobile and Online Banking.
There are 3 ways they can make overpayments.
- Single overpayments: These are one-off. They can make them online using a debit card in their name or a Santander current or savings account.
- Regular overpayments: They can amend their existing Direct Debit to pay more on top of their monthly mortgage payment. Once set up, they can amend or cancel their regular overpayment online at any time.
- A mix of the two: They can make extra single overpayments even if they've already got a regular monthly overpayment set up.
If they've got an interest only mortgage, they can set up overpayments online. However, they can only choose to reduce their mortgage payments. To reduce their mortgage term, they need to get in touch with our mortgage team.
How much they can overpay will depend on whether their Santander mortgage is on a fixed rate.
If your client is on a fixed rate: overpay up to 10% of any fixed rate loan each calendar year (January to December) without paying an early repayment charge. If they don't use their full 10% allowance in any calendar year, they won't be able to carry it over to future years.
If they overpay more than 10% of the outstanding balance each calendar year, they'll have to pay an early repayment charge on the amount over 10%. They can find out what their early repayment charge will be and how much of their 10% overpayment allowance is left in Mobile or Online Banking. They can also find details about their early repayment charge in their latest mortgage offer or annual mortgage statement.
They won't be able to use the 10% allowance if they're paying off their mortgage in full or transferring to a new deal where they need to pay an early repayment charge. When arranging a new deal, your client’s 10% allowance doesn’t reset if they transfer from one fixed rate to another.
- Multiple loans with different product codes: the 10% allowance applies to each product rather than the total outstanding balance.
- Multiple loans 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.
For example:
| Loan number | Balance | Product code | 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 £30,000 |
If your client isn't on a fixed rate: they can make unlimited overpayments without paying an early repayment charge.
Use the Overpayment calculator to help you with your advice. Base the overpayment on your client’s new interest rate and see how it could affect their monthly payment or loan term. The actual monthly payment or loan term may differ depending on when your client makes their overpayment and when their new deal starts.
If your client can’t make overpayments online, they can get in touch with our mortgage team.
For more information on overpayments visit our Santander website.