Last updated: 22 January 2022
Use our simple mortgage overpayment calculator to see how much money you could save and how quickly you can finish paying off your mortgage.
When you use our calculator, we’ll show you how to overpay your mortgage and what the benefits could be. All you need to do is enter:
Your outstanding mortgage balance
How long is left until you have paid off your mortgage
Your mortgage’s interest rate
The extra mortgage payments you would like to make
You can select overpaying your mortgage by the same amount each month, paying off a lump sum now, or doing both.
We’ll then show you:
How much money you could save in interest
How much sooner your mortgage could be paid off
We calculate how much interest your mortgage deal is likely to charge over the remaining term if you don’t make any overpayments. We then compare this with the interest you could pay if you make the overpayments entered. Using this information, we can show you how much you would save in interest by making those overpayments.
We also calculate how long it will take to pay off your mortgage if you overpay. By comparing this to your remaining mortgage term, the calculator shows how much sooner you could pay off your mortgage balance. If you dream of achieving an early mortgage payoff, this calculator could help you get on the right track.
Making overpayments means you could:
Pay off your mortgage early, meaning you’ll be mortgage-free quicker
Save thousands of pounds in interest charges
For example, a monthly overpayment of £200 on a £200,000 mortgage could save you £21,622 in interest. You would also shave five years and 11 months off your mortgage term.
The above example is based on an interest rate of 3%, a term of 25 years, and a balance of £200,000. Making overpayments of £200 every month until your mortgage is paid off could mean you clear the balance after 19 years and one month.
You can do this by making overpayments, but you can clear your mortgage even quicker if you switch to a cheaper deal.
Remortgaging to a lower interest rate means your monthly payments could go down. But if you keep overpaying, you could pay your mortgage off sooner and with less interest.
It’s best to phone your lender to set up your first overpayment. It should let you pay by debit card or bank transfer. You can then usually make any future overpayments by:
Phoning your lender each time
Mortgages come with rules regarding how much you’re allowed to overpay by each year. For example, many lenders allow you to overpay by a maximum of 10% of the remaining balance each year. Overpay by more than this, and you could be charged a penalty fee. Paying off your mortgage early with a lump sum can also incur this charge.
This is called an early repayment fee, and could cost you thousands of pounds, so check your overpayment limit with your lender first. Some early repayment fees are tiered and reduce the closer you get to the end of your mortgage deal.
Some flexible mortgages and standard variable rate (SVR) mortgages let you overpay by as much as you like at any time.