Overpayments · interest saved · 2026 rates

A little extra each month, years off the end

Q: How much can I overpay my mortgage without a penalty?

Most lenders let you overpay up to 10% of the outstanding balance each year on fixed and discount deals without an early repayment charge. On a standard variable rate and some trackers you can usually overpay as much as you like. Check your own lender's terms.

Q: What happens if I overpay more than the allowance?

You'll usually pay an early repayment charge on the excess, typically between 1% and 5% of the amount over the limit.

Q: Is it better to overpay or save?

Compare your mortgage rate with what your savings earn after tax. If the mortgage rate is higher, overpaying usually saves more, but keep an emergency fund first because overpayments are hard to get back.

Q: Should I reduce my term or my monthly payment?

Reducing the term saves the most interest. Reducing the payment keeps the term but lowers what you must pay each month. Many lenders let you choose; ask yours how it applies overpayments.

At today's rates, every pound you overpay saves interest you'd otherwise pay for decades. See what your overpayment saves and when you'd be mortgage-free.

Updated 6 October 2026 · Figures sourced and linked

Work out my savings →

£41,150Saved by overpaying £200 a month on £200,000 over 22 years at 6%Source: our calculation

10%Typical yearly overpayment allowance on fixed dealsSource: MoneySavingExpert, accessed October 2026

6.00%Average five-year fixed rateSource: Moneyfacts, reported by Financial Reporter, 5 October 2026

Overpayment calculator

Interest you won't pay

Use your current balance, rate and the years left, not the original loan. The tag warns you when a year's overpayments go past a typical 10% allowance.

Mortgage balance nowInterest rate6.00%Years left on the mortgage22 yearsExtra each month£200One-off lump sum now (optional)

Interest you'd save£41,150Mortgage-free 4 yrs 11 mo sooner. Monthly payment £1,366 → £1,566.

As you are22 yrs

With overpayments17 yrs 1 mo

Within a typical 10% yearly allowance (£20,000)

Assumes the rate stays the same and your lender reduces the term, not the payment. On fixed and discount deals, overpaying more than the allowance can trigger an early repayment charge. Check your own lender's limit before you pay.

Before you overpay

Four checks first

Your allowance

Find your lender's limit and the date the year resets. Going over usually triggers a charge on the excess (MoneySavingExpert).

An emergency fund

Keep several months of spending in easy-access savings. Overpaid money is hard to get back without remortgaging.

Dearer debts

Clear credit cards and loans first: their rates are usually higher than your mortgage.

Your next deal

A lower balance can drop you into a cheaper loan-to-value band at remortgage. Fixed or tracker next? →

Questions

Straight answers

How much can I overpay my mortgage without a penalty?

Typically up to 10% of the balance a year on fixed and discount deals; often unlimited on SVRs and some trackers (MoneySavingExpert). Your lender's terms decide.

What happens if I overpay more than the allowance?

You'll usually pay an early repayment charge on the amount over the limit, typically 1% to 5% of that excess (MoneySavingExpert).

Is it better to overpay or save?

Compare your mortgage rate with your after-tax savings rate. If the mortgage rate is higher, overpaying usually wins, but keep an emergency fund first: overpaid money is hard to get back.

Should I reduce my term or my monthly payment?

Shortening the term saves the most interest; lowering the payment gives breathing room. Ask your lender how it applies overpayments, as this calculator assumes term reduction.

Sources

Where the numbers come from

We use primary sources only: the ABI, regulators and government. Figures were checked on 6 October 2026. Spot something out of date? The source link is the fastest way to check.

MoneySavingExpert. Should I overpay my mortgage?. accessed October 2026.
Moneyfacts, reported by Financial Reporter. Average five-year fixed rate mortgage hits 6%. 5 October 2026.

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Mortgage repayment calculator →Monthly payments, total interest and what a rate change does, at today's average rates.How much can I borrow? →Income multiples, the 4.5× limit and the price range your deposit opens up.Stamp duty calculator →SDLT for home movers, first-time buyers and additional properties, band by band.Tracker vs fixed →How far Bank Rate would have to rise before a tracker costs more than a fix.First-time buyer mortgages →Deposit, loan-to-value band, stamp duty relief and Lifetime ISA rules in one place.Buy-to-let calculator →What the rent lets you borrow under the lender's interest cover test, plus yield and tax.