The term overpaying your mortgage refers to the voluntary additional payment of cash into your mortgage account over and above the agreed monthly sum.
There are a variety of reasons you might want to do this.
If you have no outstanding debt elsewhere (which is likely to be more expensive) and surplus net income or cash sitting in a savings account earning you little or no interest, then reducing your mortgage is a prudent option. Saving 3.85% in mortgage interest when you are only earning 2% gross interest in your best ISA might seem like a ‘no brainer’.
Alternatively, you might want to use a windfall or bonus to reduce the mortgage sum in case interest rates rise in the future, making payments hard to meet. Or perhaps you are planning a few months sabbatical and you want to take a ‘mortgage holiday’ thus making no payments whilst you aren’t earning.
We all have different priorities and financial circumstances and it’s impossible to consider whether or not you should consider making over payments without knowing more about your personal circumstances. For example, it might be prudent to keep some cash readily available for that rainy day, especially if you are self employed or currently find in a precarious state of employment!
The starting point should be to make sure that your mortgage agreement allows you to do what you are considering. Not all lenders will allow repayment holidays or over payments and some of those that do might charge significant fees for this activity, even if you only slightly exceed what may be allowed.
For more information or to speak to a mortgage adviser, contact us on 01628 507477.
Download our Free First Time Buyers Guide
Recent posts
Homebuying reform to cut homebuying times by around four weeks, and save first-time buyers around £650, says the government.
Buying your first home is a huge milestone, but it can also be a complex process. There are several factors a first-time buyer should consider before making an offer on a property, including understanding the difference between leasehold and freehold and checking council tax bands.
We’ve detailed some questions you can ask your estate agent to help you make an informed decision.
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Signs it's time to remortgage
2 days ago
Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.
Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.
Here are some signs it may be time to remortgage.
According to Nationwide Building Society’s latest House Price Index, house prices dropped 0.6% month on month in May – the first monthly decline this year.
Most Affordable UK Spots for First-Time Buyers
19 May 2026
Research from Lloyds identifies the most affordable areas in the UK for first-time buyers to be able to get onto the property ladder.
On Wednesday, 13th May, King Charles delivered his speech at the House of Lords, outlining the government’s plans for the upcoming year.
Here is a summary of the housing and energy/environment points.
From 18th May 2026, Halifax (part of Lloyds Banking Group) is launching a ‘£5k Deposit mortgage’ to help first-time buyers get onto the property ladder sooner.
More information
Trusted by
