Fixed rate mortgages can help your clients who like the security of knowing what their monthly repayments will be.
With a fixed rate mortgage the interest rate will stay the same for the duration of the fixed rate period
This means that the rate will not change whether the Bank of England Base Rate goes up or down
All our fixed rate mortgages are true term products.
This means that if your client's completion date is delayed, their mortgage will still run the full deal period
So, if your client is taking out a 2 year fixed product and completes on 7 August 2025, they'll make 24 monthly payments and revert to our Standard Mortgage Rate on 1 September 2027
NB: At the end of the fixed rate period your client will automatically move to our Standard Mortgage Rate (SMR).
The rate your client pays is directly linked to movements in the Bank of England Base Rate (BBR). Each time the BBR changes, your client's rate will change in time for their next payment (within one month).
All our tracker rate mortgages are true term products.
This means that if your client's completion date is delayed, their mortgage will still run the full deal period
So, if your client is taking out a 2 year tracker and completes on 7 August 2025, they will make 24 monthly payments and revert to our Standard Mortgage Rate on 1 September 2027
There are no ERCs on our tracker mortgages meaning your client has even greater flexibility.
Tracker floor
If the BBR rate is 0.00% or less during the tracker period, the rate your client will pay will be 0.00% plus the agreed set percentage above the BBR.
This means the rate your client pays will never go below 0.00% plus the additional rate of their tracker mortgage
This is known as the tracker floor
NB: At the end of the tracker rate period your client will automatically move to our Standard Mortgage Rate (SMR).
Daily interest is calculated as standard on all our mortgages.
So, each time your client pays off part of their mortgage, whether it's a regular payment or an overpayment, the interest is recalculated the next working day.
This means your client only pays interest on what they owe. It's the fairest way of charging interest and this reduces your client's mortgage balance without the need to wait for the end of the month or even year.
If your client builds up an overpayment reserve they have the flexibility to reduce their future monthly payments for an agreed period.
Interest will not be charged on any balance increase arising from underpayments until the next capitalisation of the account, annually on 31 December.
Underpayments can only be agreed up to the limit of the overpayment reserve. Borrowers must establish the amount of overpayment reserve on their account and agree a period of underpayment before commencing underpayments.
When underpayments are being agreed it must be determined what payment method is being used and an appropriate adjustment made. Underpayments are not subject to affordability or eligibility checks.
More information for your client, including how to apply, is available on our customer website.
10% annual overpayment allowance. Your client can save money by making overpayments of up to 10% a year. As we base your client's overpayment allowance on the original loan amount and not the reducing balance, they can benefit even more.
Example for new purchase or remortgage
Example for new purchase or remortgage table
Product Reservation Date
29/05/2025
Loan Amount
£100,000
Overpayment Allowance
10% of £100,000 = £10,000
Mortgage Completion Date
02/07/2025
Allowance of £10,000 reset at next anniversary date until the end of the benefit period
01/08/2026
NB: Early Repayment Charges (ERC) will apply if your client overpays by more than 10% a year during the deal period.
Important information
For products reserved on or after 29 May 2013:
If your client overpays by more than their overpayment allowance each year, an ERC will be payable on the amount paid in excess of the overpayment allowance.
When a new switch occurs, the overpayment allowance is reset. The new yearly cycle will start from the new switch date.
The annual overpayment allowance is only applicable whilst in the deal period of our fixed and tracker rate mortgages.
Tracker rate mortgages have no ERCs. So your clients can make unlimited overpayments without incurring a charge.
You can find the original loan amount advance in the original Mortgage Illustration/Offer
Percentage allowance is a calculation of the original loan amount minus any admin fees.
For products reserved before 29 May 2013:
These will remain on the £500 per month overpayment allowance
Any ERCs incurred will apply to the entire overpayment amount
Our BMR/SMR, which is only available to existing customers reaching the end of their deal period, allows unlimited payments. So your client can overpay by as much as they like, when they like.
An overpayment can impact the LTV when completing an additional borrowing (further advance) application. If you would like to remove the overpayment reserve, you'll need to follow the overpayment reserve removal process. Terms and conditions apply.
