Mortgage Overpayment Calculator

Mortgage Amount (£): Term (years): Interest Rate (%): Monthly Overpayment (£):

Please check your mortgage offer for early repayment terms. Many lenders allow up to 10% of your balance per year without penalty. This is often under a section called “Flexible Features” or “Additional Features.”

Results

How this calculator works

This tool is designed to help you understand how regular mortgage overpayments might reduce your overall interest costs and shorten the term of your mortgage. It provides an illustration based on the information you enter and assumes a consistent interest rate and monthly payment throughout the term.

Please note:
– The results are estimates only and do not constitute financial advice.
– Calculations assume overpayments are made every month from the start of your mortgage term.
– This calculator does not account for early repayment charges, changing interest rates, or other flexible features your mortgage may include.
– Many lenders allow you to overpay up to 10% of your balance per year without incurring a fee — check your mortgage offer under sections similar to “Flexible Features” or “Additional Features.”

For tailored advice based on your individual circumstances, please get in touch or book an intro call with us.

What is a mortgage overpayment?

A mortgage overpayment is when you pay more than your agreed monthly repayment. This extra amount goes directly towards reducing your mortgage balance, helping you pay off your loan faster and reduce the total interest paid over the life of the mortgage.

How do mortgage overpayments save me money?

Overpayments reduce the amount you owe, which means the interest charged on your mortgage decreases. Over time, this can save you thousands in interest and potentially shave years off your mortgage term.

How much can I overpay without penalties?

Many lenders allow you to overpay up to 10% of your outstanding mortgage balance per year without penalty during a fixed-rate period. Outside of a fixed-rate deal, some mortgages allow unlimited overpayments. Always check your lender's terms or speak to your adviser.

Are there any risks to overpaying my mortgage?

The main risk is early repayment charges (ERCs) during a fixed-rate period. Also, once money is used to reduce your mortgage, it's not easily accessible, so ensure you keep enough savings aside for emergencies before making large overpayments.

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