Making a lump sum overpayment or regular monthly overpayments will reduce your mortgage balance and the amount of interest you pay. That may help you pay off your mortgage earlier or could mean that you’ll have more options to remortgage in future.
You can make unlimited overpayments without paying an early repayment charge.
If you’re thinking about paying off your balance in full, there’s more information on our Paying off your mortgage page.
Our overpayments calculator
Our calculator will help to show how overpayments might affect your mortgage. You can use it to show how even relatively small regular monthly overpayments could have a significant effect on the amount of interest you’ll pay over your remaining term.
See the positive impact making overpayments could have on your mortgage.
Whether it’s a regular monthly overpayment or a one-off amount, you might be surprised how much difference it makes.
Using this tool
You’ll need to have an idea of the amount you can afford to overpay. You’ll also need to know the outstanding balance, repayment basis (interest only, part & part or capital & interest), current interest rate and remaining term of your mortgage.
Find out how to quickly see up to date information about your mortgage account.
If your mortgage made up of multiple sub-accounts, you won’t be able to use the calculator and you’ll need to call us to discuss your situation.
Benefits of making overpayments
Overpayments are easy to set up and you won’t be charged any fees for making them.
You can make additional payments to reduce your mortgage balance every month or as a one-off lump sum at a particular point.
Each overpayment you make helps reduce your mortgage balance meaning you’ll pay less interest over the remaining term of your mortgage.
Reducing your balance could also reduce your loan to value ratio (the amount you owe compared to how much your property is worth) which could make it easier for you to remortgage in the future.
Understanding the results
Our calculator shows how making overpayments on a mortgage reduces the total amount of interest paid and balance owed at the end of the term.
The results you’ll see are based on the information you have entered for your overpayment amount, current balance, interest rate, type of mortgage and remaining term.
Our calculator uses a simple method to determine the amount of interest you’ll pay, by dividing the total amount of interest you’ll pay over a full year into 12 equal monthly amounts.
Since interest on your mortgage may be calculated differently (such as on a daily basis), then the actual impact of making overpayments on your mortgage may differ slightly to the figures shown in the calculator.
Our calculator also makes several other assumptions about your mortgage, including:
- You make your standard monthly payment every month over the full remaining term.
- You make the same regular monthly overpayment amount (if any) every month over the full remaining term of your mortgage.
- There is no change to your interest rate over the full remaining term of the mortgage.
- There are no fees or charges added to the balance you owe.
- There are no other changes to your mortgage which would result in a recalculation of your monthly payment (e.g. changes to your remaining term or a switch to repayment/interest-only basis).
Since some of these assumptions may not apply to your mortgage, the results of this calculator should only be used as a guide.