Making overpayments
Making a one off overpayment or regular monthly overpayments will reduce the amount you owe and that means you’ll pay less interest overall. Overpayments could help you pay off your mortgage or loan sooner or give you more options to move to another lender in the future.
You can make unlimited overpayments on your mortgage or loan without paying an early repayment charge.
Our overpayment calculator
See how overpayments might affect your mortgage or loan. You can use our calculator to show how even relatively small regular monthly overpayments could have a significant effect on the amount of interest you’ll pay over your remaining term.
Overpayment calculator
See the positive impact making overpayments could have on your mortgage or loan.
Whether it’s a regular monthly overpayment or a one-off amount, you might be surprised how much difference it makes.
Using this tool
You’ll need to have an idea of the amount you can afford to overpay. You’ll also need to know the outstanding balance, repayment basis (interest only, part & part or capital & interest), current interest rate and remaining term of your mortgage or loan.
Find out how to quickly see up to date information about your account.
If you have a part & part mortgage, or your mortgage has sub-accounts with different repayment types, terms or interest rates, you’ll need to enter overpayment details for each part separately.
Benefits of making overpayments
Overpayments are easy to set up and you won’t be charged any fees by us for making them.
You can make additional payments to reduce your mortgage or loan balance every month or as a one-off lump sum at a particular point.
Each overpayment you make helps reduce your mortgage balance meaning you’ll pay less interest over the term of your mortgage or loan. This may help you to pay off your mortgage earlier or give you more options in the future.
If you have a mortgage with us, reducing your balance could also reduce your loan to value ratio (the amount you owe compared to how much your property is worth) which could make it easier for you to remortgage to another lender in the future.
Understanding the results
Our calculator shows how making overpayments on a mortgage or loan reduces the total amount of interest paid and balance owed at the end of the term.
The results you’ll see are based on the information you have entered for the overpayment amount, current balance, interest rate, repayment basis and remaining term of your mortgage or loan.
Our calculator uses a simple method to determine the amount of interest you’ll pay, by dividing the total amount of interest you’ll pay over a full year into 12 equal monthly amounts.
Since interest on your mortgage or loan may be calculated differently (such as on a daily basis), then the actual impact of making overpayments on your mortgage or loan may differ slightly to the figures shown in the calculator.
Our calculator also makes several other assumptions about your mortgage or loan, including:
- You make your normal monthly payment every month over the full remaining term.
- You make the same regular monthly overpayment amount (if any) every month over the full remaining term.
- There is no change to your interest rate over the full remaining term
- There are no fees or charges added to the balance you owe.
- There are no other changes to your mortgage or loan which would result in a recalculation of your monthly payment (e.g. changes to your remaining term or a switch to repayment/interest-only basis).
Since some of these assumptions may not apply to your mortgage, the results of this calculator are indicative and should only be used as a guide to the impact of overpayments on your mortgage.
One-off (lump sum) overpayments
Please think carefully before you make an overpayment on your mortgage. We won’t assess whether it’s affordable for you, so you should consider your budget and essential expenditure. We can’t offer additional borrowing in future and, depending on your terms and conditions, you may not be able to ask for the overpayment back.
Pay using Self-Serve
We don’t set a limit to the amount you can overpay with your debit card using Self-Serve, but your own bank may have restrictions on the size of payments you can make.
Just sign-in and click on Make a lump sum overpayment. If you haven’t used Self-Serve before there’s more information about how to register on our Using Self-Serve page.
Note – If you have a standalone unsecured loan you won’t be able to use Self-Serve to make an overpayment – you’ll need to use another payment method instead.
Call us
If you call us and one of our agents takes your debit card payment over the phone the maximum amount you can pay is £14,999.
If you make a debit card payment using our automated system without speaking to an agent, the maximum amount that you can pay is £5,000.
When you make your payment, we may ask you to provide details about your source of funds. That’s nothing to worry about, it’s simply a routine requirement of money laundering regulations. If we need any more information we’ll write and let you know.
Please note – however you pay, you won’t be able to pay the total outstanding balance of your mortgage. If you want to pay off your mortgage in full please visit our Paying off your mortgage or loan page for more information.
You can send us an overpayment by bank transfer.
Our bank account name is Topaz Finance Limited. To find the bank account number and sort code to use you can sign in to Self-Serve and click on the Paying by bank transfer button in the Payments menu.
You can also find our bank account details in the welcome letter we sent to you in November 2019. However if you no longer have this letter and are unsure which bank details to use, please call us.
Please include your mortgage account number as a reference when making your bank transfer.
Paying by cheque
You can make an overpayment by sending us a cheque. Please remember to write your account number on the back of the cheque and post this to us at:
Heliodor Mortgages
PO Box 124
Skipton
BD23 9FR
Please allow eight working days for postage and the payment to be applied to your account.
We’ll only accept debit card payments from a card in the name of a mortgage account holder, unless you’ve set up a third-party authority, allowing someone else to make payments to your account on your behalf.
If you use our online Self-Serve system, we’ll provide on-screen prompts explaining how your overpayment will be applied to your account before we ask you to go ahead and confirm the payment.
If you want your overpayment to go to a different sub-account, you’ll need to contact us to provide your instructions.
If your account is in arrears, you’ll be prompted to make a separate payment to clear the arrears before you can go ahead and make an overpayment by debit card.
After you’ve made your overpayment, we’ll usually recalculate your monthly payment – it may take up to five working days for your new payment to be displayed in Self-Serve. We’ll also write to tell you your new monthly payment amount.
If you make an overpayment on top of your regular monthly payment without giving us any specific instructions, here are a few important points about how we’ll process it and apply it to your account:
- If you have any arrears on your account, we’ll use your payment to clear them.
- If you make an overpayment of more than £500, we’ll recalculate your monthly payment and write to you confirming the details.
- Payments under £500 may not immediately trigger recalculation of your monthly payment. However, the reduction in your outstanding balance will affect the next routine recalculation of your monthly payment, for example when you receive your annual statement or your interest rate changes.
- If you have a mortgage with more than one part (a sub account), we’ll apply your overpayment to the account with the highest interest rate.
If you want to make an overpayment and reduce the term of your mortgage instead of changing your monthly payment amount, you’ll need to contact us.
Regular overpayments
You’ll need to contact us to set up regular monthly overpayments.
Each overpayment will reduce the amount you owe but won’t reduce the term of your mortgage or loan. If you want to make overpayments with the aim of paying off your account sooner, you’ll need to review the amount you’re overpaying, after any routine recalculation of your monthly mortgage payment, for example if your interest rate changes.
Our overpayment calculator shows how making overpayments on your mortgage or loan could reduce the total amount of interest paid, and balance owed at the end of the term.
Please think carefully before you make any overpayments on your mortgage. We won’t assess whether they are affordable for you, so you should consider your budget and essential expenditure. We can’t offer additional borrowing in future and, depending on your terms and conditions, you may not be able to ask for the overpayments back.
You can arrange to pay a fixed amount on top of your normal monthly payment. For example, if you pay by Direct Debit and your normal monthly payment is £500, then you arrange to pay an additional £200, we’ll collect £700 each month.
If your normal monthly payment changes, for example, because of a change in the interest rate you pay, we’ll collect the amount of the new normal payment plus £200. If the interest rate you pay increased, and your normal monthly payment increased to £525, we’d collect £725 per month.
This means that whenever we tell you that your normal monthly payment is changing, you’ll need to check that the extra amount you’re paying is still suitable for you.
You can arrange to pay a fixed amount each month.
The fixed amount can’t be less than the amount of your normal monthly payment. If your normal monthly payment changes, for example, because of a change in the interest rate you pay, we’ll continue to collect the fixed payment amount, provided the fixed amount is more than your normal monthly payment.
For example, if you pay by Direct Debit and your normal monthly payment is £500, but you arrange to pay £600 per month. If your normal monthly payment changed to £525 because of a change in the interest rate you pay, we’d continue to collect £600 per month. If your normal monthly payment increased to £625, the overpayment would be cancelled, and we’d collect £625.
We’ll only accept debit card overpayments if the name of the cardholder matches with the name of the person on the account, unless you’ve set up a third-party authority, allowing someone else to make payments to your account on your behalf.
Any overpayments you make will reduce the amount you owe but your normal monthly payment may change, for example when there’s an interest rate change, or when we recalculate your monthly payment at the time you receive your annual statement.
When your normal monthly payment does change it’s important to check the amount, you’re overpaying isn’t more than you can afford, or if you want to increase the amount you overpay.
Making regular overpayments won’t reduce your remaining term. If you’re making overpayments because you want to pay off your mortgage or loan sooner, it’s a good idea to check and, if necessary, adjust the amount you overpay at least once a year when we send you your annual statement.
If you don’t pay by Direct Debit, you can make regular overpayments simply by paying more than your normal monthly payment by debit card, standing order, bank transfer, or cheque.
An overpayment of more than £500 may trigger recalculation of your monthly payment. Otherwise, any reduction in your outstanding balance will affect the next routine recalculation of your monthly payment, for example when you receive your annual statement or if there is a change in the rate of interest you pay.
If you need to discuss your overpayment
If you want to find out how your monthly payment will change before you decide to make an overpayment, but you’re not sure about using our overpayment calculator, please call us.
We’ll give you an estimate over the phone and we’ll also follow that up by sending you the details in a letter.
You should also call us if you want to give us more detailed instructions about how we should apply your overpayment to your account. For example, if you want the payment to be applied to a specific sub account.
You can also ask us about combining your overpayment with changing your mortgage term or making a change to the repayment type of your mortgage. The calculators available on our Useful tools page will give you an idea of how your mortgage could change. Please contact us to discuss your options here.
Please note – we’re unable to change the term or repayment type of an unsecured loan, whether this is standalone or as part of a Together mortgage.