You could be mortgage-free sooner than you think.
Making overpayments can be a great way to save money over the term of your mortgage. If you choose to pay more than your minimum monthly mortgage payment or pay off a lump sum you will reduce your outstanding balance, save money in interest payments and could reduce the term of your mortgage.
Depending on your mortgage type, there may be restrictions on the maximum amount you can overpay, either by regular overpayments or as a lump sum, in one year without incurring an Early Repayment Charge (ERC). You can usually repay a fixed percentage of your original mortgage balance per year without charge. For more details, see your mortgage offer or call us on 0345 8501 711.
You can overpay on your mortgage by:
Lump Sum overpayments:
- These are payments made in one, that are not included in your contracted monthly subscription
- These payments reduce your mortgage balance and will normally trigger a recalculation of your monthly repayments
Regular overpayments:
- This involves gradually increasing your direct debit to a fixed monthly amount, or a set amount above your minimum monthly payments
- These payments reduce your balance
| Benefits of regular overpayments example |
| Mortgage amount: |
£100,000 |
| Remaining term: |
15 Years |
| Interest rate: |
2% |
Minimum monthly payment
(capital & interest):
| £643 |
| Monthly overpayment of: |
£100 |
| Interest saved: |
£2,505 |
| Term reduced by 2 years and 3 months |
|---|
Mortgage overpayments calculator
Our mortgage overpayments calculator allows you to see the difference that could be made to your mortgage by making regular overpayments.
Simply complete the first 4 fields of the form below and click calculate. We will then illustrate what your monthly payments could be, the amount of interest you could save and any reduction in your mortgage term. We will show illustrations for both a repayment mortgage and an interest only mortgage.
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