Use our online repayment calculator to see how your outstanding mortgage balance will be affected when you make either a one-off or regular overpayment(s).
Although some lenders have early repayment charges and large exit fees, if you have a flexible borrowing product then you should easily be able to make overpayments whenever you want, which helps lower the overall amount of debt you owe whilst reducing some of the interest.
If you are considering this option then there are a couple of ways you can go about lowering your remaining mortgage debt, depending on your individual needs and circumstances. However, not all products allow for this, so it is important you read the small print and contact your lender if you are in any doubt.
The quickest way to reduce your outstanding mortgage amount is by making a singular, lump sum overpayment. When you make a large one-off payment towards your mortgage debt then your lender will usually recalculate what you owe and the new balance will be reflected by a reduction in the amount you are expected to pay each month. If you choose this option then your contract will still run until the previously agreed end date, although you will find that you have more money left over each month in your personal budget for other expenses.
However, some borrowers may have other intentions when making a lump sum overpayment. In certain cases, you might want to use the overpayment as a means of paying off your mortgage earlier than the agreed end date. By using our online mortgage overpayment calculator, you have the option of working out:
a) How much your monthly repayments will be reduced, or:
b) The adjusted date when your final mortgage payment will be made.
If you have recently acquired a new job with a higher salary, or you have managed to pay off some of your other debts and you have found that you have more disposable income each month, you might want to settle your mortgage earlier by means of regular monthly overpayments. The main advantage of this approach is that you can reduce the overall amount of interest you owe by paying a little extra each month. This will reduce the overall interest you owe whilst helping you pay off your mortgage much earlier than anticipated. When you choose to do this, you will not be forced to keep up the overpayments although you will still be expected make the same regular monthly repayments you made at the start of your agreement until the full debt has been settled.
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