Mortgage Overpayment Calculator
See how much interest you can save by paying a little extra each month.
Mortgage Details
Your Savings
Interest Saved
£21,141
Time Saved Off Mortgage
3 years, 6 months
*Calculations are for illustrative purposes. Check with your lender regarding early repayment charges (ERCs) before making overpayments.
Why Overpay Your Mortgage?
Mortgages are calculated on a compounding interest basis. In the early years of a 25-year mortgage, a massive proportion of your monthly payment goes entirely toward paying off interest, barely touching the actual debt.
By overpaying even a small amount each month, 100% of that overpayment goes directly toward reducing the principal debt. This means next month, interest is calculated on a smaller debt, creating a snowball effect of savings.
Example: If you buy a terraced house in Wavertree for £200,000 at a 5% interest rate over 25 years, overpaying just £100 a month will save you over £25,000 in interest and shave more than 3 years off your mortgage.