Mortgage Overpayment Calculator

Overpaying on your mortgage could help you save money. It may also mean you can pay off your mortgage faster.

Calculate what you could save and how much sooner you could clear your mortgage by overpaying regularly or making a lump sum payment.

How much can you save by overpaying?

Recurring Monthly Overpayment: £200

By regularly overpaying £200 per month we estimate that you will have

Saved £32,481.66 in interest

Cleared your mortgage balance 9 years 9 months earlier

Mortgage balance overtime

This information is an estimate and relies on certain assumptions. It is only intended as a general guide. Please ensure that you carefully check with your lender or brokers before proceeding with any mortgage overpayments.

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What is a mortgage overpayment?

A mortgage overpayment is any additional money you pay towards your mortgage above your agreed monthly repayments. Mortgage overpayments can usually be made by lump sum or by increasing your regular monthly repayments.

Should I overpay my mortgage monthly or by lump sum?

Making a bigger one-off lump sum overpayment will reduce your outstanding mortgage faster than smaller regular overpayments, saving more interest.

However, once you’ve paid money into a mortgage, you may not be able to get it back. So if you don’t have savings set aside, or your budget is relatively tight, you may wish to be more cautious and opt for smaller monthly overpayments, which you can change or stop if necessary,

How much can I overpay on my mortgage?

Some mortgages have limits on how much you can overpay without incurring a charge and some don’t. If you have a tracker mortgage or are paying your lender’s standard variable rate (SVR), you may be allowed to overpay as much as you like penalty-free.

However, with fixed-rate mortgages, you’ll generally find overpayments are limited to 10% of your outstanding mortgage balance each year, or sometimes 20%.

Overpay by more than you’re allowed and early repayment charges must be paid. These can be significant, so it’s important to check with your lender exactly how much extra can be paid without being charged.

What are the advantages of making mortgage overpayments?

Some of the advantages of making mortgage overpayments include:

Paying off your mortgage faster: Mortgage overpayments may help you pay off your mortgage in less time.

Reducing the total interest cost you pay: Paying more towards your mortgage could mean that you’ll cut the amount of interest you repay over its lifetime too.

Remortgaging options: Mortgage overpayments can reduce your loan-to-value (LTV), which may help you unlock lower interest rates when you’re ready to remortgage and switch to a new deal.

» MORE: See current mortgage rates

What are the disadvantages of overpaying your mortgage?

There are some important things to consider before making mortgage overpayments, including:

Potential fees: Some lenders charge fees for mortgage overpayments and most will impose a charge if you exceed your mortgage overpayment limit within the deal period.

Overpayment cap: Most fixed-rate mortgage deals have a maximum annual overpayment limit, which may trigger hefty early repayment charges if exceeded.

A smaller savings pot: Using extra money to pay off your mortgage, rather than saving, may have an impact on your emergency fund.

Should I overpay my mortgage?

Whether mortgage overpayments are the right option for you will depend on your financial circumstances. While paying more towards your mortgage could help you pay off your mortgage faster and reduce interest, it’s important to have sufficient savings set aside and not overstretch yourself financially. Speaking to your lender and getting mortgage advice may help you decide.

» MORE: Is it worth overpaying your mortgage?

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

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