Making overpayments on your buy to let mortgage

An overpayment is any extra payment you make over your contractual monthly mortgage payment. 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.

Early Repayment Charges (ERCs)

Some of our mortgages have limits, known as an allowance, on how much you can overpay. If you go over this allowance, you may have to pay an Early Repayment Charge (ERC).

If your mortgage is with The Mortgage Works, Derbyshire Home Loans or E-Mex Home Funding and is on a Managed Rate or Variable Rate, you can overpay as much as you like, there’s no ERC.

However, other mortgage products that are on fixed or Lifetime Variable rates usually have an overpayment allowance of 10% a year. A few of our products do have a different allowance. Check your mortgage offer or most recent annual mortgage statement to find out how much you can overpay as a regular or lump sum payment without being charged an ERC.

How overpayments affect your mortgage

We calculate the interest on your mortgage daily, so all overpayments will reduce the amount of interest charged from the following day. We update your mortgage balance monthly, so any change to your contractual monthly payment will take place from the following month.

For example, with a one-off overpayment:

  • If you make an overpayment of £5,000 on 19 June, the overpayment is credited to the account.
  • From 20 June the mortgage balance is reduced immediately, the interest due is reduced at the end of the month.
  • On 1 July the interest due for the month of July is calculated, based on the reduced mortgage balance.
  • Your monthly payments due are also usually re-calculated.

How we apply overpayments to your mortgage

Unless you tell us otherwise, we’ll apply your overpayment to your mortgage using the following principles in this order; providing you’re within your overpayment allowance(s):

1. Interest only mortgages.

2. Highest interest rate (where there is more than one account on the mortgage).

3. Highest balance (where there is more than one account on the mortgage).

Contact us if you’d like your overpayment to be applied differently.

How to make overpayments

We can only accept payments from bank accounts that match the name(s) on the mortgage. Any payments made that don’t match the name(s) on the mortgage will be returned.

Making a one-off overpayment

Online

Use our bank details to transfer money online. Please use your mortgage account number as the reference:

The Mortgage Works
(TMW) mortgages 
Derbyshire Home Loans Ltd
(DHLL) mortgages
E-Mex mortgages
Sort code: 20-12-04
Account number: 30813230
Bank name: Barclays
Sort code: 20-12-04
Account number: 30874620
Bank name: Barclays
Sort code: 20-53-77
Account number: 53928446
Bank name: Barclays

Confirmation of Payee is an 'account name checking service' that helps avoid payments going to the wrong account. It’ll alert you to an account name that differs to the account details provided.

Some customers have told us that The Mortgage Works is being flagged as not matching the account name. This is because customer payments are collected on our behalf by Barclays. Please be assured though, the bank details on this page are correct.

This issue will be addressed when the Confirmation of Payee service is updated, which is currently scheduled to take place at the end of 2021.

Over the phone

Contact us to make a card payment over the phone. You’ll need to have your mortgage account number to hand.

By cheque

Make cheques payable to The Mortgage Works. Write your full name and mortgage account number on the back, and send them to:

The Mortgage Works
Portman House
Richmond Hill
Bournemouth
BH2 6EP

Making a regular overpayment

Contact us to set up or change a regular overpayment.

If you are changing a regular overpayment, we’ll need to know 10 days before your next payment is due.