Overpaying a mortgage | Overpayment information | YBS
Overpayments and allowances
This can be a regular overpayment made monthly, or a one-off overpayment as a lump sum.
What's on this page?
Before making an overpayment
Overpayment allowance
Most mortgage providers let you overpay a percentage of your outstanding balance each year. This is your overpayment allowance. You can overpay any amount at any time by regular overpayment or a one-off overpayment but you will need to pay an early repayment charge (ERC) if you go over your allowance in a given year.For example, you might have a mortgage of £100,000 with a yearly overpayment allowance of £10,000. This means you can overpay as many times as you like within a year, however, if your total overpayments for the year are more than £10,000, you will need to pay an early repayment charge.
Overpaying by too much on some mortgages can be costly. Other mortgages have no ERCs or overpayment allowances at all. Check the details of your mortgage to learn about your allowances and ERCs. If your mortgage is made up of more than one part you should check each part as the allowances may be different.
Overpayment period
Overpayment allowances are usually set for 12 months at a time. You can’t usually carry over any unused allowance to a following year.You can often pay up to your full allowance without charges one year and then do the same again the following year.
If you have more than one part to your mortgage deal, the 12 month overpayment allowance period may be different for each part.
This is important if you’re planning monthly overpayments. It’s a good idea to talk to us about when any part’s allowance will end as you may get early repayment charges without planning around your overpayment periods.
The effect on your mortgage
You may be able to use your overpayment in a few different beneficial ways:How to make an overpayment
| Method | One-off overpayment |
|---|---|
| Online | If you’re a YBS customer, you can log in to your account to get all the details you need to make a one-off overpayment through your bank. |
| Payments from another bank or building society | To make a payment from another bank or building society, here are the details you'll need: Our Sort Code: 60 92 04 |
| Over the phone | You can use our 24/7 automated telephone service to make an overpayment by debit card. Please have your account number or customer number to hand. 0345 1200 100 9am to 5pm Monday to Friday 9am to 1pm Saturday Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones. |
| In branch | You can make an overpayment by cash or cheque at your local branch. Use our Branch Finder to find your nearest one. |
| Method | Regular overpayment |
|---|---|
| Online | If you’re a YBS customer, you can log in to your account to send a secure message to change how much you pay, you may also be asked to call our Customer Contact Centre to confirm your overpayment. |
| Offline | If you don't manage your account online, please call our Customer Contact Centre. 0345 1200 100 9am to 5pm Monday to Friday 9am to 1pm Saturday Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones. |
Important information
You can only have payment holiday by overpaying first. You will need to speak to us and agree the holiday before you take a payment break or reduction. This may allow you to have a payment holiday without extending length of your mortgage.