Find out how overpaying your mortgage each month, or paying a lump sum, cuts the interest and the years left on your loan.
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Example
On a £200,000 mortgage at 4.5% with 25 years left, the normal payment is £1,111.66. Paying an extra £200 a month saves about £36,280 in interest and clears the mortgage 6 years and 1 month sooner.
Frequently asked questions
How much can I overpay without a penalty?
Many UK fixed-rate mortgages allow overpayments of up to 10% of the balance a year without an early repayment charge. Check your mortgage offer, as limits vary.
Should I overpay or invest?
Overpaying gives a guaranteed return equal to your mortgage rate. Investing might earn more but is not guaranteed. Keep an emergency fund first. For car loans, see overpaying a car loan.