For a variety of reasons, you may find that you have additional funds available in a given month or at a particular time. This may be for example from a promotion at work, a financial commitment coming an end or from sharing living costs with a new partner. This often leads clients to asking

whether it is worth overpaying their mortgage. Although I am sure we can all think of other things we could spend a little extra money on, there are some significant financial benefits to overpaying a mortgage. Reducing the capital balance of your mortgage means you pay less in interest and this can save a significant amount of money over the
full term of the mortgage, depending on the term you have left.

If you had a repayment mortgage for £150,000, over 25 years, on an interest rate of 3.5% and you overpaid by £100 a month, you would save £14,396 over the term of the mortgage and this means you could pay off your mortgage 4 years and 4 months sooner. See Mortgage Overpayment Calculator: Pay off your debt early? (

Some mortgages allow you to overpay 10% of the capital balance each year, however you should carefully check your existing mortgage conditions to confirm exactly what the rules are for your product before overpaying. If you overpay by more than your allowance, then early repayment charges may apply which could easily cancel out any benefit of overpaying.

Feel free to call us to discuss your existing mortgage product and we would be more than happy to look at it and provide you with free guidance on overpaying. Contact us