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
‘My First Mortgage’ from major high-street lender Santander is specifically for those wanting to buy their first property. It allows first-time buyers to purchase 98% of the property’s value. However, certain criteria must be met to be eligible.
Best UK Mortgage Rates this Week
2 days ago
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.
Maidenhead, Berkshire – 26th January 2026 – Dedicated independent mortgage experts, Mortgage Required, are delighted to have acquired fellow experienced brokerage, Y-Not Finance.
The acquisition connects two well-respected brokerages, both with a wealth of experience and shared values, to continue providing the best advice on all aspects of the mortgage market.
As part of the UK government’s plans to change the leasehold system to help families struggling with unaffordable ground rent costs.
The Prime Minister announced this morning (27 January) that ground rents will be capped at £250 per year, reverting to a peppercorn rate after 40 years.
Additional borrowing, also known as a further advance, is when you borrow more money on your existing mortgage for a specific reason agreed with your lender.
Here are five of the most common reasons for additional borrowing.
UK Housing Market Round-Up: 2025
30 Dec 2025
Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.
Take a look at the 2025 summary of the UK housing market.
Buying in the New Year
29 Dec 2025
If buying your first property, or moving home, is on your to-do list this year, the new year can be a great time to take this big step. In this short blog, we look at what you need to consider as you plan and prepare for your home-buying journey.
Just because the Bank of England decides to reduce the base rate, this doesn't automatically mean that your mortgage rate will go down.
More information
Trusted by
