Early repayment charges
These are the charges that will apply to your mortgage if you want to overpay or repay early.
Can I make overpayments
With these mortgages you’re able to make unlimited overpayments without incurring any early repayment charges. Any extra monthly payments or lump sum payments you wish to make will be classed as overpayments and can be paid by standing order, cash, cheque or transfer. Debit card payments can also be made over the phone or in branch. When you make an overpayment your account is credited for the sum received, and your balance adjusted.
Any overpayment you make will be deducted from your balance on the same day and your interest adjusted – allowing you to benefit immediately.
By making extra payments to reduce your balance, the daily interest charged to the loan will also reduce, which will mean that you can repay the loan more quickly.
Alternatively, you can let your overpayments build up and request a refund at a later date.
Or you can use your overpayments to fund a payment holiday in the future – just when you need it.
Refunds of overpayments
You may request a refund of all or part of the overpayments built up on your account. Only overpayments made to the parts of your mortgage on our Cambridge Variable Mortgage product can be refunded. (If you have any other loans or charges secured on your property you must contact one of our Mortgage Advisers for advice).
Your request must be in writing and authorised by all account holders. We’ll require 14 days to carry out your request.
In considering your request, we reserve the right to seek confirmation of your current income in order to reassess affordability, and carry out a credit check if deemed necessary. We may refuse your request if you fail to prove affordability or have failed to pay the minimum monthly payment or fallen into arrears.
Refunds will normally be made directly to the bank account that your mortgage repayment direct debit is received from. This will take up to three days from the date of transfer. Following a refund, we'll recalculate your monthly payment.
What if I want to repay early?
If you switch your loan to another lender, a different mortgage deal with us, make extra payments or repay it in full, you can do so without incurring any early repayment charges.
What If I want to move home?
If you move house, you may transfer the balance and remaining term of your mortgage to your next home without penalty. These requests will be subject to our underwriting criteria and the terms can't be extended to any further borrowing if the product has been withdrawn.
You may request a payment holiday after your account has been in operation for at least six months and your overpayments accumulated exceed at least one month’s monthly payment. We may refuse your request if the account has, at any time, fallen into arrears.
During the payment holiday we’ll continue to charge interest to your account and your overpayments will be used to maintain the monthly payment that you’d normally pay, your payment holiday cannot exceed the total overpayments you’ve accumulated. If your overpayment balance allows, you can take a payment holiday for up to 12 months.
After your payment holiday, you must continue to make at least six normal monthly payments before another payment holiday request can be agreed. All payment holidays must be agreed in advance and your request must be in writing. It normally takes us 14 days to arrange. At the end of your payment holiday, we’ll recalculate your monthly payment.