Mortgage Overpayment Calculator
Use this free UK Mortgage Overpayment Calculator to see how making extra payments,monthly or annually, can reduce your overall interest and shorten your mortgage term. Whether you're overpaying by £50 a month or making a lump-sum payment each year, this tool shows you how much you could save. The results can be surprising.
Why Make Mortgage Overpayments?
Overpaying your mortgage means you’re paying off the loan faster than originally agreed. This reduces the total interest paid and could shave years off your mortgage term. Many UK lenders allow penalty-free overpayments up to 10% of the outstanding balance per year, but always check your mortgage terms first.
What This Calculator Shows
- Original vs. new monthly payment (if making monthly overpayments)
- Total interest saved over the life of the loan
- How many years you could shave off your mortgage term
- A chart showing your remaining balance over time
Frequently Asked Questions
How much can I overpay on my mortgage?
Most lenders in the UK allow you to overpay up to 10% of the outstanding balance per year without penalties. Overpaying more than this may trigger early repayment charges so be sure to check your mortgage agreement before making any overpayments.
What’s better: monthly or annual overpayments?
Monthly overpayments are generally more effective because interest is calculated monthly. However, if you receive a bonus or lump sum, annual overpayments still make a significant difference.
Can I reduce my monthly payments instead of the term?
Some lenders allow this, but this tool focuses on overpayments used to shorten the mortgage term and reduce interest.
Do overpayments make sense if I plan to move?
If you're moving soon, it depends. Overpayments save interest only if you're in the mortgage long enough, but if your mortgage is portable or your lender offers flexible terms, it may still help.
Next Steps
Looking for more mortgage tools? Try our Mortgage Repayment & Affordability Calculator or Stamp Duty Calculator. Visit the Tools page for more.