Mortgage Overpayment Calculator

A mortgage overpayment calculator can help you estimate how much you could save by paying more towards your mortgage each month. Find out how making mortgage overpayments could help you pay off your mortgage faster.

Brean Horne Last updated on 16 August 2022.

Regularly making mortgage overpayments could help you save money. Get a quick estimate of how much you could save over the lifetime of your mortgage using our mortgage overpayment calculator. Then simply adjust the sliders to enter the details below.

The calculator does not take into account a change of interest rate across the full term of the mortgage.

Always check with your lender any limits in place around overpayments to your mortgage.

Effects of making overpayments

Making regular overpayments on your mortgage can save you a significant amount of money, find out how much with this mortgage calculator.

Loan amount

Current Interest rate

Current term

Monthly overpayment

Based on the information you have given us:

This information is an estimate and relies on certain assumptions. It is only intended as a general guide. Please ensure that you carefully check quotes with lenders or brokers before proceeding with any financial product.

How our mortgage overpayment calculator works

Our mortgage overpayment calculator estimates how much you could save over the lifetime of your mortgage by paying more towards your mortgage each month. You’ll need to enter the following details to get an estimate:

  • mortgage loan amount
  • current interest rate
  • current term
  • monthly overpayment

Adjust the sliders in the mortgage overpayment calculator to enter the figures for each one.

It’s worth noting that your estimate is a general guide, and it’s essential to also check quotes with lenders or brokers before acting on the information.

What is a mortgage overpayment?

A mortgage overpayment is any additional money you pay over your agreed monthly mortgage repayments. Making mortgage overpayments could help you save money on the total amount of interest you pay back, which may help you pay off your mortgage quicker.

There are two ways to make a mortgage overpayment: as a lump sum or a regular monthly overpayment. It’s worth noting that many providers only allow you to pay around 10% more in overpayments. If you pay off more than this, you may have to pay additional fees which can be significant.

What is a regular monthly overpayment?

A regular monthly overpayment is when you pay an additional sum towards your mortgage each month, on top of your usual monthly repayment. You can make regular monthly overpayments via direct debit. If you want to change your overpayment amount or stop it altogether, you’ll need to contact your lender to adjust or cancel the direct debit.

What is a lump sum overpayment?

A lump sum overpayment is a one-off sum paid towards your usual mortgage repayment. This type of mortgage overpayment is made on an ad-hoc basis. This means that you could choose not to overpay the following month, or change your lump sum as and when you wish.

How much can I overpay on my mortgage?

Many lenders allow you to overpay on your mortgage by up to 10% each year, but this may vary depending on your mortgage provider and mortgage deal. Therefore, it’s important to check with your lender before making mortgage overpayments to avoid early repayment fees or breaching the terms of your mortgage agreement.

How do I make a mortgage overpayment?

There are several ways of making mortgage overpayments including:

  • direct debit
  • bank transfer
  • debit card
  • paying by cash or cheque in a branch

The mortgage overpayment methods you can use will depend on whether you are making a regular monthly overpayment or a lump sum payment. Speak to your lender to help you find the most suitable way to make your mortgage overpayment.

What are the pros and cons of making mortgage overpayments?

Some of the benefits of making mortgage overpayments include:

  • Paying off your mortgage faster: Mortgage overpayments may help you pay off your mortgage in less time.
  • Reducing the total interest cost you pay: Paying more towards your mortgage could mean that you’ll cut the amount of interest you repay too.
  • Remortgaging options: Mortgage overpayments can reduce your loan to value (LTV), which may help you unlock lower interest rates when you're ready to remortgage and switch to a new deal.
  • Flexibility: Mortgage overpayments are flexible (within the terms and conditions of your mortgage) and can be tailored to suit your financial circumstances.

There are several risks of making mortgage overpayments to be aware of:

  • Hidden fees: Some lenders charge fees for mortgage overpayments and most will impose a charge if you exceed your mortgage overpayment limit within the deal period.
  • Overpayment cap: Most fixed-term mortgage deals have a 10% overpayment limit, which restricts how quickly you can pay off your mortgage which can trigger early repayment charges.
  • A smaller savings pot: Using extra money to pay off your mortgage, rather than saving, may have an impact on your emergency fund.

Should I overpay on my mortgage?

Whether mortgage overpayments are the right option for you will depend on your financial circumstances. While paying more towards your mortgage could help you pay off your mortgage faster and reduce interest, it’s important to maintain a healthy emergency savings fund to cover any unexpected expenses too. Speaking to your lender and an independent mortgage adviser could help you find the best option.

Where can I find the best mortgage deals?

Shopping around can help you find the most suitable offers. Price comparison sites can be a good place to start and can help you compare mortgages quickly.

It’s always worth taking steps to get your finances in order to help you access the best mortgage deals. Check your credit score to get an idea of the types of mortgage deals you’ll be eligible for. Although it may be possible to get a mortgage with a lower credit score, it can be worthwhile trying to improve your credit history to help you unlock better deals and cheaper interest rates.

About the author:

Brean is a personal finance writer at NerdWallet. She covers a range of financial topics and has written for consumer titles including Which?, Moneywise and The Motley Fool. Read more

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