Lloyds Bank – UK Mortgages

Overpayments and underpayments

There may be times when you want to pay more or less than your monthly payments.

This section explains how to make overpayments and underpayments. More information about the types of overpayments and underpayments you may be able to make can be found in our mortgage features guide.

Try our overpayment calculator to find out how much you might be able to overpay on your mortgage. Anyone can use this calculator, even if you’re with another lender.

If you have a Lloyds Bank mortgage and you’re registered for Internet Banking, you can get a more personalised result. Log on to your account and select the ‘Overpayments’ button.

Not signed up for Internet Banking? Register now, it only takes a few minutes to set up.

How do I make regular overpayments?

You can make regular overpayments by increasing the amount of your monthly payment. Currently, as a concession, in each calendar year you can make regular or lump-sum overpayments of up to 10% of the amount owed at 1st January without having to pay an early repayment charge. (This is for any product where an early repayment charge applies.)

Direct Debit

If you pay by direct debit you can set up, amend or cancel a regular overpayment using internet banking.

If you’re already registered for online banking with us then you’ll need to sign into your account, then select:

  • More actions
  • Paying your mortgage
  • Manage regular overpayments

If you are using a mobile device to access internet banking you’ll need to use the internet browser on your phone/tablet.

If you are not already registered, you can do so here.

Alternatively, you can call us on 0345 603 1637 and ask us to increase the monthly direct debit we collect from your bank account. Please remember to have your mortgage account number to hand.

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Standing Order

You can set up an additional standing order via your bank or building society account. You will need the following details:

Sort code: 30-00-00
Account number: 00353019
Reference number: Your 14 digit mortgage account number followed by 00.

If you want to make the payment to a specific part of your mortgage, you can replace the 00 with the two digit sub-account number for the part of your mortgage you would like to repay. For example, if you would like to set up your additional standing order to repay part 2 of your mortgage, the reference you would enter would be your 14 digit account number followed by 02. If you don’t tell us which part of your loan you want to repay, we’ll reduce each part of your loan in the same proportions as we apply your full monthly payments.

If you use Internet Banking you may be able to set a standing order up online, if you don’t use Internet Banking you’ll need to contact your own bank or building society to set this type of payment up.

If you have a Lloyds Bank current account but are not registered for Internet Banking yet, it’s easy and only takes about 5 minutes. Find out how to register.

How do I make lump-sum overpayments?

The easiest way to make a lump sum overpayment is to transfer the funds from your bank account.

If you bank with Lloyds Bank you can make an additional lump-sum payment using internet banking. If you are using a mobile device to access internet banking you‘ll need to use the internet browser on your phone/tablet.

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You’ll need to log into your internet banking, then select:

  • More actions
  • Paying your mortgage
  • Make additional lump-sum payment

If you bank elsewhere you can transfer the funds from your bank account using the details above. You’ll need to contact your bank or building society to do this, or you may be able to do this by using Internet Banking.

Alternatively, you can call us on 0345 603 1637 and make a payment up to £60,000 by debit card (we do not accept credit cards or debit Mastercards). You can also pop into your local branch or write to us enclosing a cheque (cheques should be made payable to Lloyds Bank followed by your name and your 14 digit mortgage account number followed by 00. If you want to make the payment to a specific part of your mortgage, replace 00 by the sub-account number for that part of your mortgage). If you don’t tell us which part of your loan you want to repay, we’ll reduce each part of your loan in the same proportions as we apply your full monthly payments. Please note cheques may not be credited to the account on the same day that we receive them.

If you would like to use your lump-sum overpayment to repay the full balance of a specific part, or the whole of your mortgage, you will need to call us on 0345 603 1637 to request a redemption statement. You may have to pay early repayment charges if they apply.

Currently, as a concession, in each calendar year you can make regular or lump-sum overpayments of up to 10% of the amount owed at 1st January without having to pay an early repayment charge. (This is for any product where an early repayment charge applies.) Find out more about early repayment charges.

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Please remember to have your mortgage account number to hand when you call.

We will automatically use any additional payments received to reduce your balance and the interest we charge you. You need to tell us if you would like us to immediately recalculate your monthly payments using the reduced balance over the remaining mortgage term. If you don’t do this we will do this automatically when we next recalculate your monthly payment, for example at an interest rate change.
 
If you would like to keep your monthly payment the same, and reduce the remaining mortgage term you may need to speak to one of our qualified mortgage advisers, who will discuss your needs and circumstances and recommend the most suitable mortgage, and term for you.  To speak to an adviser please call us on 0345 727 3747 or you can book an appointment online.

Underpaying your mortgage

If you want to make underpayments, you should call us on  0345 603 1637  to discuss your options.

If you have previously made overpayments, we can tell you how much is available for you to use to underpay. We can then change your direct debit for the time you want to underpay.

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