Calculate how much you could save on interest and reduce your mortgage term by making extra payments. Enter your mortgage details below to see the potential savings from overpayments.
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Discover proven strategies, UK-specific rules, and expert tips to pay off your mortgage early and save thousands in interest.
Read Our Complete Guide →Mortgage overpayments are extra payments you make on top of your regular monthly mortgage payment. These extra payments go directly towards reducing your principal balance, which reduces the interest you'll pay over the life of the loan and can significantly shorten your mortgage term.
The amount you can save depends on your mortgage balance, interest rate, and the size of your overpayments. Even small regular overpayments can save thousands of pounds in interest and reduce your mortgage term by several years.
Many UK mortgages allow you to overpay up to 10% of the outstanding balance per year without penalty. Check your mortgage agreement for specific terms, as some lenders may charge early repayment fees for overpayments exceeding this limit.
This depends on your personal circumstances. If your mortgage interest rate is higher than what you'd earn in savings, overpaying typically makes financial sense. However, ensure you have an emergency fund first and consider other debts with higher interest rates.
When you overpay, you typically have two options: reduce the term (pay off earlier with same monthly payment) or reduce the monthly payment (keep same term but pay less each month). This calculator shows the benefit of reducing the term, which typically saves more interest overall.
This calculator provides accurate estimates based on standard mortgage formulas. However, actual savings may vary depending on your specific mortgage terms, when overpayments are made, and your lender's policies. Always consult with your mortgage provider for precise figures.