Use the mortgage overpayment calculator to work out how you could pay off your mortgage early by making regular overpayments.

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

Input a few trial figures to see how you could reduce the term of your mortgage significantly.

Enquiries are handled by FM2 Financial Consultants. FM2 are 'whole of market' advisers and directly authorised with the FSA with access to a mortgage database containing thousands of mortgage offers - updated daily with many high-street lenders including Halifax, Nationwide, Woolwich, Alliance & Leicester, Cheltenham & Gloucester, RBS, Abbey, Northern Rock, Coventry and Leeds Building Society.

Their advisors are able to quickly find a product to suit your individual requirements.

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 monthly overpayments each month is 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.

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.

Add this Mortgage Overpayment Calculator to your favourites.

Using industry standard calculations this calculator will give you an approximate monthly repayment amount for the figures provided.

Actual repayment figures will vary due to fees and personal circumstances.

Common Misspellings: Morgage Calculator Mortgage Calulator