Could you pay more towards your mortgage?

If you would like to clear your mortgage debt faster and save money on interest payments then overpaying on your mortgage could be an option.

What is an overpayment?

Making mortgage overpayments means paying more towards your mortgage than the original amount that was set by your lender which was based on;
  • The interest rate on your mortgage product
  • The term 
  • The amount that you owed at the beginning of the agreement
There are two ways of overpaying:

Option 1: An overpayment can be a one-off lump sum. When you make a one-off payment you'll often have the choice to reduce your mortgage term, potentially saving hundreds of pounds in interest over the long-term, or reducing your monthly mortgage payments if you'd prefer to reduce your outgoings. Your lender will recalculate your contractual monthly payment as you will now have a lower balance to pay off. 

Option 2: You could use regular overpayments that are made by increasing your monthly payments by a certain amount. Regular monthly overpayments are usually quite flexible and you can choose to make them or not at any time. Of course, you must continue to still pay your original monthly payment.

You can also overpay with a mixture of the two methods mentioned above. 

Can I make mortgage overpayments?

If you are considering making an overpayment, you need to check whether your mortgage lender actually accepts this or has any restrictions regarding overpayments. For example, you may only be able to pay 10% of your outstanding mortgage each year without incurring a fee. Some mortgage providers charge fees if you overpay more than their limits so this could be counterproductive. 

Can I afford it?

Overpayment may not be feasible for your financial situation. But, if you think it is, you could consider it as a way to reduce your mortgage faster over time. If you would like to reduce your overspending on unnecessary items and transfer those savings over to your mortgage, check out our tips on how to save fast. This is where we show you how you could save thousands over the course of a year by cutting down on daily coffees.

Remember, if you don’t have a ‘cash cushion’ or any rainy day savings then it could be safer to build up an emergency fund before starting to overpay on your mortgage. It is also wise to take into account other debts that you may have as these may have higher interest rates than your mortgage. Therefore, focusing on these before overpaying your mortgage would essentially be cheaper over time. 

Check out MoneySavingExpert's mortgage calculator to see how soon you can reduce your mortgage debt.

Overpayment isn’t for me

If you’re not sure about overpayment but feel like you could potentially remortgage and save money on your monthly payments, speak to our mortgage experts at Nottingham Mortgage Services (NMS) to find out. NMS are mortgage brokers. The advisers will compare thousands of mortgages from over 60 different lenders, including banks like Barclays, Santander and NatWest to find the right product for your needs. They won’t just look at the headline rates, they’ll weigh up your financial circumstances and look at all the mortgage features to find the correct mortgage for you.

NMS will provide you with a dedicated adviser who will work with you every step of the way to make the mortgage process simple – whether you’re a first time buyer, looking to remortgage or looking for a buy-to-let mortgage. Find out more about why to use a mortgage broker. If you have a savings account with The Nottingham with a balance of over £500 that was opened 12 months ago or more, you qualify for our loyalty scheme, Member Rewards, and the fee for this service - up to £299 - won’t apply to you.

Your home may be repossessed if you do not keep up repayments on your mortgage.


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