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Mortgage overpayments

Pay down your mortgage more quickly

Overpayments could save you money

We want to help you manage your mortgage more effectively. If you have a mortgage which allows you to make additional payments or overpayments, you are able to make extra payments on top of your standard monthly payment either by making regular overpayments or by making lump sum payments. This means you could:

  • pay off your mortgage earlier
  • reduce the amount of interest payable - the interest chargeable on the outstanding mortgage balance is calculated every day rather than every week, month or year

 Firstly, you need to check what type of mortgage you hold:

  • if you have a fixed rate mortgage, you'll have an annual overpayment allowance (AOA) to enable you to make additional payments during the fixed or discounted rate period without incurring an Early Repayment Charge (ERC). The allowance is equivalent to 10% of the outstanding balance of your mortgage calculated on each anniversary of the start of your fixed rate period
  • as long as you do not exceed your annual overpayment allowance during a year when the Early Repayment Charge applies, you can make as many overpayments as you like within that year either by increasing your monthly mortgage payments or making lump sum payments
  • if you exceed your annual overpayment allowance, the ERC will be charged on the amount you have repaid over the allowance
  • HSBC Tracker/ HSBC Variable/ HSBC Home Buyers' Variable rates have no limits or charges for making additional payments

How to make overpayments and additional payments

  • log on to online banking to view details of your annual overpayment allowance and transfer a lump sum to your mortgage account or contact one of our dedicated Mortgage Specialists on 0800 169 6333. If you do not hold a HSBC current or savings account, please contact your own bank to transfer a lump sum to your mortgage
  • if you'd like to make regular overpayments by increasing the Direct Debit for your monthly mortgage payment, or if you'd rather reduce your monthly mortgage payment instead, you can send us a secure e-message through online banking or call one of our dedicated Mortgage Specialists on 0800 169 6333

Payment and overpayments FAQs

Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Lines open Monday – Saturday 08:00 – 20:00, Sunday 09:00 – 18:00. Calls may be monitored and recorded. Opening hours within the mortgage departments may vary.

It's easy to answer your query online. Visit our Help page to find out how.