Mortgage Overpayment Calculator – Pay Off Your Mortgage Early

Use the mortgage overpayment calculator to work out how repay a mortgage early by making regular overpayments.

Many mortgage lenders allow overpayments of about 10% of the outstanding balance of the mortgage per year without penalty. Others have a maximum overpayment of around 500 but specialist ‘Flexible’
and some ‘Offset’ mortgages may allow borrowers to overpay much more

Making regular monthly overpayments each month can be more beneficial than paying off a lump sum each year. This is because as soon as the overpayment is made, the loan is reduced and therefore less interest will be charged on the balance.

Input a few trial figures to see it it’s possible to reduce the term of a mortgage significantly.

If you would like to get in touch with a mortgage adviser we have access to a handpicked selection of firms across the UK who will be more than happy to answer questions and provide help and advice.

We put you in touch with advisers across the UK. An adviser will contact you and provide full details about the firm they represent and how they work. You will then be able to decide if you want to use
their services or not. By submitting your details you are under no obligation to accept any recommendations.

Why over pay your mortgage?

When we take out our first mortgage the repayments are usually calculated over a 25 year period. In recent years this has increased and payments can now me made over 30 and sometimes even 40 years.

Either way, the term we set our mortgage over is usually a long time and because of this we think to ourselves, ‘we’re going to have to pay this mortgage for 25 years of our lives’. This puts us in a mind-set and we mentally prepare ourselves to be stuck with a mortgage for what feels like forever.

By making regular overpayments to your mortgage you can actually significantly reduce the number of years over which the payments are spread.

At a rate of 6% on a mortgage of 100,000, if overpayments of 100 are made each month it is possible to reduce the term of the mortgage by over 6 years as well as saving over 26,000 in interest alone!

So, overpayments of 100 per 100,000 borrowed (at a rate of 6%) could save thousands in interest as well as helping to pay off the mortgage early.

Making regular overpayments can be normally be done in a two ways. A standing order can be set up to pay your regular mortgage payment plus an additional amount if you know you will regularly be able to afford to make the overpayments. Or it is possible to send funds to your mortgage lender by cheque or electronically. You should contact your mortgage lender to find out how they would accept an overpayment.


Some Lenders Standard Product Overpayments (allowed without penalty):

Abbey – 10%

Birmingham Midshires – 10%

Cheltenham & Gloucester – 10%

Coventry – 5%

Halifax – 10%

Manchester Building Society – 10%

Nationwide – 500 per month

Newbury Building Society – 10%

RBS – 10%

Woolwich – 10%


Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.