Pay It Down Faster
Calculate your mortgage freedom date with custom overpayments
Enter your current mortgage balance
Enter your mortgage interest rate as a percentage
Enter your mortgage term in years
Potential Savings
You could pay off your mortgage 0.0 years earlier
Total interest saved: £0
Balance Comparison
Year-by-Year Projection
Frequently Asked Questions
What is a mortgage overpayment?
A mortgage overpayment is when you pay more than your required monthly mortgage payment. This extra payment goes directly toward reducing your principal balance, which can help you pay off your mortgage earlier and save on interest payments over the life of the loan.
How do mortgage overpayments save me money?
When you make overpayments, you reduce the principal balance of your mortgage faster. Since interest is calculated based on your remaining balance, reducing the principal means you'll pay less interest over time. This can lead to significant savings and allow you to become mortgage-free years earlier than your original term.
Are there any penalties for overpaying my mortgage?
Many lenders allow you to overpay up to a certain percentage (typically 10%) of your outstanding mortgage balance each year without penalties. However, exceeding this limit might incur early repayment charges. Always check your mortgage terms or contact your lender to understand your specific overpayment allowances.
Should I overpay my mortgage or invest the money instead?
This depends on your financial situation and goals. Overpaying your mortgage gives you a guaranteed return equal to your mortgage interest rate. If you believe you can achieve higher returns through investments (after accounting for taxes and risk), investing might be more beneficial. Consider consulting with a financial advisor to determine the best strategy for your circumstances.
How do I set up regular overpayments?
Most lenders offer options to make regular overpayments. You can typically set up a standing order for a higher amount than your required payment, make lump sum payments, or increase your direct debit amount. Contact your mortgage provider to discuss the most convenient method for making overpayments on your specific mortgage.