How much can I overpay on my mortgage?

Most UK mortgage lenders allow you to overpay up to 10% of your outstanding balance per year without early repayment charges. Check your mortgage terms as limits vary by lender and product.

Is it better to overpay my mortgage or save?

If your mortgage interest rate is higher than the return you can get on savings (after tax), overpaying your mortgage is generally more beneficial. However, you should keep an emergency fund and consider paying off higher-interest debts first.

Mortgage Overpayment Calculator

See how much time and interest you could save by making regular or one-off overpayments on your mortgage.

Last updated: April 2026 · Source: FCA — Mortgages overview

Outstanding Balance

Interest Rate (%)

Remaining Term (years)

Monthly Overpayment

Interest Saved

£36,280.39

Time Saved

6y 1m

	Without Overpay	With Overpay
Monthly Payment	£1,111.66	£1,311.66
Total Interest	£133,499.49	£97,219.09
Mortgage Term	25 years	18y 11m

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Mortgage overpayments reduce your outstanding balance faster, which means you pay less interest over the life of the loan. Most UK lenders allow you to overpay up to 10% of the outstanding balance per year without incurring early repayment charges. Overpayments can reduce either the monthly payment amount or the mortgage term.

Reducing the term keeps your monthly payments the same but clears the mortgage sooner. Reducing the payment lowers your monthly outgoing but keeps the same end date. Over the long term, reducing the term usually saves more in total interest because the principal decreases faster.

This calculator models both approaches. Enter your current mortgage balance, interest rate, remaining term and proposed overpayment to see the interest saved, the new payoff date and whether you would exceed the typical 10% annual overpayment limit.

Example: £200,000 balance, 4.5% rate, 22 years remaining, £200/month overpayment

Current monthly payment: £1,253
With £200/month overpayment: £1,453
New payoff time: approx. 16 years 8 months (5 years 4 months early)
Total interest saved: approx. £34,500
Check: £200 × 12 = £2,400/year — within 10% of £200,000

Source: FCA — Mortgages overview

Frequently Asked Questions

How much can I overpay on my mortgage?: Most UK mortgage lenders allow you to overpay up to 10% of your outstanding balance per year without early repayment charges. Check your mortgage terms as limits vary by lender and product.
Is it better to overpay my mortgage or save?: If your mortgage interest rate is higher than the return you can get on savings (after tax), overpaying your mortgage is generally more beneficial. However, you should keep an emergency fund and consider paying off higher-interest debts first.