Most UK lenders allow you to overpay up to 10% of your outstanding mortgage balance each year without penalty. Some lenders offer higher limits or unlimited overpayments, especially on tracker or variable rate mortgages. Always check your specific mortgage terms for early repayment charges (ERCs).

If your mortgage interest rate is higher than the after-tax return you can earn on savings, overpaying is generally more beneficial. For example, overpaying a 5% mortgage is equivalent to earning 5% tax-free on savings. Use our calculator to compare the exact figures for your situation.

Most UK lenders reduce your mortgage term while keeping monthly payments the same, which saves you the most interest overall. Some lenders offer the option to reduce your monthly payment instead. Contact your lender to confirm which approach they use.

With most standard mortgages, overpayments cannot be withdrawn. However, offset mortgages and some flexible mortgages allow you to borrow back overpayments. If you think you might need access to the funds, consider an offset mortgage or keep an emergency fund before overpaying.

An early repayment charge is a fee your lender may charge if you overpay more than your annual allowance or pay off your mortgage early during a fixed-rate or discounted period. ERCs typically range from 1% to 5% of the amount overpaid and decrease each year of your deal.

Enter your current mortgage balance, interest rate, remaining term, and planned overpayment amount. The calculator compares your mortgage with and without overpayments, showing you exactly how much time and interest you could save. All calculations happen in your browser — no data is sent to our servers.