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.

Terms & conditions apply.