Last updated: 22 January 2022

How to use our mortgage overpayment calculator

Use our simple mortgage overpayment calculator to see how much money you could save and how quickly you can finish paying off your mortgage.

How to use the early repayment calculator for overpayments

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

About your result

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.

Why overpay on your mortgage?

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.

How is this calculated?

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.

How to pay off your mortgage faster

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.

You can find a new mortgage here or get help switching to a cheaper deal with RateSwitch.

How to make an overpayment

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:

  • Bank transfer

  • Standing order

  • Phoning your lender each time

Beware of early repayment charges

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.

How to make an overpayment and avoid paying mortgage early repayment charges

Do all mortgages have early repayment charges?

Some flexible mortgages and standard variable rate (SVR) mortgages let you overpay by as much as you like at any time.