Overpayments on your client's buy to let mortgage

This page has information around overpayments, including Early Repayment Charges (ERC’s), criteria and exceptions.

Your client can make lump sum or regular overpayments of up to 10% of the initial mortgage balance in each 12 month period from the anniversary of completion, or the anniversary of the most recent product switch date, without having to pay any ERCs. This isn't available if the whole loan is being repaid or security released.

Should your client wish to overpay more than 10% and not be subject to ERCs, they'll need to be on the standard variable rate or within the last month of their product term.


Assets held by the customer for repayment of the mortgage are not acceptable where it is denominated in a currency other than pounds sterling (GBP).

Early Repayment Charges (ERCs)

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

However, other mortgage products that are on fixed or Lifetime Variable rates, usually have an overpayment allowance of 10% a year. Some of our products do have a different allowance. Your clients can contact us on 0345 606 40 60 to find out how much they can overpay as a regular or lump sum payment, without being charged an ERC.

If your clients choose to make an overpayment within the last month of their product term, they will not be charged ERCs.

How overpayments can affect your client’s mortgage

If your clients make an overpayment, the amount they owe us will be reduced immediately and the amount of interest they pay will be reduced from the first day of the following month providing they're within their overpayment allowance(s):


For example, with a one-off overpayment:

  • If they 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
  • Their monthly payments due are also usually re-calculated.

How we apply overpayments to your client’s mortgage

Unless we’re told otherwise, we’ll apply your client’s overpayment to their mortgage using the following principles in this order; providing they're within their 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).

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


Your clients can use our bank details to transfer money online. Please ensure you input these details correctly.

Your clients will need to use their mortgage account number as the reference.

The Mortgage Works mortgages Derbyshire Home Loans Ltd mortgages E-Mex mortgages

Account name: The Mortgage Works UK PLC

Sort code: 20-12-04

Account number: 30813230

Account type: Business

Account name: Derbyshire Home Loans Limited

Sort code: 20-12-04

Account number: 30874620

Account type: Business

Account name: E-Mex Home Funding Limited

Sort code: 20-53-85

Account number: 53928446

Account type: Business

Repaying part or all of the mortgage early

If your client decides to repay all or part of their mortgage early, an ERC may apply. The ERC will be based on the type of interest rate your client has, the amount they are repaying and the date they took out their mortgage.

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