Calculate Your Mortgage Overpayment Savings
Discover how extra mortgage payments can save you thousands in interest and reduce your mortgage term significantly.
Enter your mortgage details and overpayment amount to see potential savings
Essential information about UK mortgage overpayments and their benefits
Most UK lenders allow you to overpay up to 10% of your outstanding mortgage balance each year without penalty. However, this can vary by lender and mortgage type, so check your specific terms.
This depends on your mortgage rate versus potential investment returns. Generally, overpay if your mortgage rate exceeds what you could earn elsewhere, but ensure you have an emergency fund first.
Yes, many lenders offer the option to either reduce your mortgage term or lower your monthly payments when you overpay. Reducing the term saves more interest overall, while lower payments improve monthly cash flow.
Overpayments are typically flexible - you can usually stop or reduce them at any time without penalty. Your mortgage will continue with the reduced balance and adjusted term or payments.
Potential downsides include reduced liquidity, opportunity cost if you could invest at higher returns, and less flexibility for other financial goals. Always maintain an emergency fund before overpaying.