Making Mortgage Overpayments
Overpaying your mortgage can save you thousands in interest and help you repay your loan faster. But it’s important to understand how overpayments work — and what limits apply.
What is a mortgage overpayment?
An overpayment is any amount you pay on top of your agreed monthly mortgage payment.
Overpayments directly reduce your outstanding loan balance, meaning you pay less interest over time.
Benefits of overpaying:
Pay off your mortgage sooner
Save significant amounts of interest over the long term
Reduce monthly payments in the future (depending on your lender’s terms)
How much can you overpay?
Most lenders allow overpayments of up to 10% of the outstanding balance per year without penalty while on a fixed or discounted deal.
Unlimited overpayments are usually allowed if you're on your lender’s standard variable rate (SVR).
Are there any risks or downsides?
Early repayment charges (ERCs) may apply if you exceed allowed limits.
Always ensure you keep emergency savings accessible before tying up funds in overpayments.
Overpaying may not always be the most effective option if you have higher-interest debts elsewhere.
We’ll help you calculate how much you can safely overpay, check your lender’s rules, and assess whether overpayments fit within your broader financial plan.
"Overpayments can be a powerful way to reduce your mortgage term and save on interest — but only if done correctly. We’ll guide you through your lender’s overpayment rules and help you make smart, affordable choices that fit your bigger financial picture."