When you took out your mortgage you will have been told how much your monthly payments will be. Your N&P mortgage will need to be paid by Direct Debit. We make this a condition of taking a mortgage with us, but it is the easiest way to pay and offers two main advantages:
- You don’t have to remember to make your mortgage payment – we’ll collect it from you through the banking system
- If your mortgage payment changes, you don’t need to notify your bank. The amended amount will be collected automatically.
We’ve changed the date your monthly payment is due from the 25th of the month to the date of your Direct Debit.
This means that if, for example, your Direct Debit payment date was on the 18th of the month and you, unfortunately, miss it; you no longer have until the 25th to make a payment. You will therefore be in arrears as soon as you miss your payment and we’ll contact you shortly afterwards to confirm this. Of course we want to help you to avoid this, so you can change your Direct Debit payment date at any time to a date which suits you best.
If you’re happy with your current Direct Debit payment date then you don’t need to make any changes to it, but please make sure you have enough funds in your payment account to cover your mortgage payment to us each month.
If your preferred payment method is not by Direct Debit (e.g. standing order), your payment will still be due on – and should be received by – the 25th of the month.
If you miss a payment, for whatever reason, you’ll be in arrears and we’ll contact you shortly afterwards to confirm this. We really want you to avoid this, so please make sure you have the necessary funds to cover your payment.
If you have any queries about your mortgage payments, please call our mortgage advisers on 0345 300 2522. If your mortgage is in arrears, it may be possible for you to pay by Debit Card or other payment method. In this situation, our mortgage advisers will discuss the best payment option for you. If your mortgage is in arrears you may be charged additional fees. See our tariff of mortgage charges for more details.
Your interest will be calculated daily and charged to your mortgage account at the end of each calendar month. This means that every payment you make will affect the amount of interest charged to your account and, if you make an overpayment now and then, this will reduce the balance on which interest is charged.
Please remember that this works the other way round too. If you underpay or miss a payment, this will increase the balance on which interest is charged. Also, if any fees, charges, insurance premiums or other sums are added to your mortgage account, these will increase the balance on which interest is charged. See our tariff of mortgage charges for more details.
Overpayments and payment holidays
We know that life can be unpredictable, and that there may be times when you need to skip a few mortgage payments. This can be arranged (with the society's agreement) as long as you have overpaid enough to cover the missing amounts. If you regularly pay in more than your normal monthly figure, this could be treated as an advance amount against future payments and means you can then contact us if you would like to arrange a payment holiday.
Please note: interest will continue to be charged during a payment holiday.
Lump sum payments
If you’ve come into some money, you might want to make a lump sum payment to reduce what you owe on your mortgage. The minimum amount you can pay in this way is £250 and an overpayment cannot be refunded or claimed back once it has been made. A lump sum payment is different from a regular overpayment and can’t be used to support payment holiday requests.
If you are paying our standard variable rate of interest on your mortgage and make a lump sum repayment, you have a choice of either reducing your monthly payments or not - just tell us which option you would like when making your payment. If you have a special type of mortgage, such as a Fixed Rate Mortgage, we may apply an early repayment charge if you make an extra payment.
You can contact one of our mortgage advisers on 0345 300 2522 for more information.
Annual review of payments
Your Monthly Payment will be reviewed once a Year on 31st December to take account of any changes in the interest rate on your mortgage (as well as other changes to your account balance, including any fees added). We will tell you of any change in your Annual Mortgage Statement. Your new Monthly Payment will take effect in the following March. Your Monthly Payment may also change at any other time, for example, when a fixed, capped or discount rate period ends.