UK mortgage guide
How mortgage overpayments can reduce interest
On a repayment mortgage, an overpayment can reduce the loan balance sooner. That may mean less interest over the life of the loan and a shorter mortgage term.
In short
The earlier an overpayment reaches the balance, the longer it has to reduce future interest. The actual benefit depends on your mortgage rate, remaining term and your lender's rules.
How a repayment mortgage works
Each usual monthly payment covers the interest due for that month and reduces some of the amount borrowed. Early in the term, a larger share normally goes towards interest; later, more goes towards the balance.
What a regular overpayment changes
Paying an extra amount each month reduces the balance faster. Interest is then calculated on a smaller balance, so the loan can be repaid earlier or the lender may offer to reduce a future payment instead. Check which option your lender applies.
Limits and fees to check first
Fixed-rate deals often limit how much you can overpay in a year. Going above that limit can lead to an early repayment charge. Your mortgage offer and lender's app or statement should explain the limit, fee and when it resets.
Why the result is an estimate
Mortgage rates can change after a fixed deal ends, and lender calculations may use daily interest, payment dates, fees or different rounding. A calculator is useful for comparing scenarios, but it is not a mortgage offer or financial advice.
Use the mortgage repayment and overpayment calculator to compare a standard repayment with a regular overpayment. Confirm any change with your lender or a regulated mortgage adviser before acting.