Follow these steps to estimate your mortgage overpayment savings:
Get instant estimates for interest savings and term reduction based on April 2025 UK regulations.
A mortgage overpayment is when you pay more than your regular monthly mortgage payment, either as a lump sum or regular extra payments, to reduce your balance and interest costs.
Overpaying reduces your principal balance faster, lowering the interest charged over time and potentially shortening your mortgage term, saving you money overall.
Many UK lenders allow overpayments up to 10% of your balance annually without penalty. Exceeding this may incur Early Repayment Charges (ERCs). Check with your lender.
Most mortgages allow overpayments, but fixed-rate deals often have stricter limits. Standard Variable Rate (SVR) mortgages typically allow unlimited overpayments. Confirm with your lender.