How Much Should I Overpay on My Mortgage? A UK Guide
This guide is for general information only and does not provide financial advice. Check your lender’s terms before overpaying, as early repayment charges may apply. Your home may be repossessed if you do not keep up repayments on your mortgage.
There is no single right amount. The ceiling is usually your lender’s overpayment allowance, often 10% of the balance a year during a fixed or discounted rate but lender-specific. The amount that suits you may be one you can keep up after your emergency fund and other priorities. The tables below show what different amounts could do, as estimates.
Start with your ceiling: the overpayment allowance
Your mortgage offer or annual statement should show how much you can overpay each year without a charge and when the year starts. If it does not, ask your lender. Monthly overpayments and lump sums usually count towards the same limit. Our guide to the UK mortgage overpayment cap explains how the limit usually works and what can happen if you go over it.
What different monthly amounts could do
The table below shows estimates for three balances at a 4.5% rate that stays the same, with 25 years remaining. It assumes your lender keeps your payment the same, so the mortgage ends sooner, and it ignores fees and early repayment charges. These are illustrations, not forecasts, and your own result will differ.
| Monthly overpayment | £150,000 balance | £200,000 balance | £250,000 balance |
|---|---|---|---|
| £50 a month | about £11,193 saved, 2 years 5 months sooner | about £11,534 saved, 1 year 10 months sooner | about £11,749 saved, 1 year 6 months sooner |
| £100 a month | about £20,033 saved, 4 years 5 months sooner | about £21,142 saved, 3 years 6 months sooner | about £21,871 saved, 2 years 10 months sooner |
| £250 a month | about £38,193 saved, 8 years 8 months sooner | about £42,366 saved, 7 years 2 months sooner | about £45,351 saved, 6 years 1 month sooner |
| £500 a month | about £54,947 saved, 12 years 9 months sooner | about £63,888 saved, 11 years sooner | about £70,832 saved, 9 years 8 months sooner |
How that compares with a 10% allowance
This table shows the same overpayments as a share of your balance each year, so you can compare them with your lender’s allowance. A figure below your allowance does not guarantee that no charge applies, because allowances are set by each lender.
| Monthly overpayment | £150,000 balance | £200,000 balance | £250,000 balance |
|---|---|---|---|
| £50 a month (£600 a year) | 0.4% | 0.3% | 0.2% |
| £100 a month (£1,200 a year) | 0.8% | 0.6% | 0.5% |
| £250 a month (£3,000 a year) | 2.0% | 1.5% | 1.2% |
| £500 a month (£6,000 a year) | 4.0% | 3.0% | 2.4% |
How the interest rate changes the picture
A higher rate means each pound overpaid tends to save more interest, and a lower rate means less. The table below repeats two amounts on a £200,000 balance at three rates.
| Monthly overpayment | 3.5% rate | 4.5% rate | 5.5% rate |
|---|---|---|---|
| £100 a month | about £15,123 saved, 3 years 4 months sooner | about £21,142 saved, 3 years 6 months sooner | about £28,126 saved, 3 years 7 months sooner |
| £250 a month | about £30,682 saved, 7 years sooner | about £42,366 saved, 7 years 2 months sooner | about £55,568 saved, 7 years 4 months sooner |
Estimates from this site’s calculator. They assume the rate stays the same for the whole term, which is unlikely to be true over 25 years. Try your own figures in the free mortgage overpayment calculator.
Ways to choose an amount
- Many people start small and increase: a modest regular amount is easier to keep up, and it can be raised when the budget allows.
- Many people keep an emergency fund first: a common suggestion is three to six months of essential expenses, but this depends on your circumstances.
- Some people prefer regular payments to saving up a lump sum: the earlier money reaches your mortgage, the more interest it can save, other things being equal.
- It can help to revisit the amount at each remortgage: your rate, allowance and finances may have changed.
When you may want to overpay less
You may prefer to overpay less if you are close to your allowance and an early repayment charge could apply, if you expect large costs soon, or if your income varies. If you are unsure, consider speaking to a regulated mortgage adviser. Our guide to whether to overpay has questions to work through first.
Questions people ask
How much can I overpay without a penalty?
It depends on your lender and your deal. During a fixed or discounted rate the limit is often 10% of the balance a year, but some lenders allow more or less, and some lenders remove the limit once the rate ends. Check your mortgage offer or ask your lender. See the UK mortgage overpayment cap.
Is £100 a month worth overpaying?
Small overpayments can add up over time, but the effect depends on your balance, rate and term. This guide’s tables show estimates for £50 and £100 a month, and our guide to how much £100 a month could save works through one example.
Can I overpay more than 10%?
Sometimes you can, but you may pay an early repayment charge on the amount above your lender’s allowance while you are on a fixed or discounted rate. The charge varies by lender and deal, so check your mortgage offer before you pay.
Where to go next
See how to overpay your mortgage for the step-by-step procedure, and lump sum versus monthly overpayments if you are weighing a one-off payment.