Mortgage Overpayment Calculator
See what you could save from mortgage overpayments in 3 easy steps.
Enter your mortgage
See how much you could save
by making overpayments
Download the Sprive app and start making overpayments
Tell us about your current mortgage
How much do you have left to pay on your mortgage?
How many years are left on the mortgage?
How much is your monthly mortgage payment?
Estimated interest you’ll pay your lender
Let’s see what making overpayments
could do for your mortgage
What could you afford to overpay on your mortgage each month?
Would you like to include a lump sum overpayment too?
How much you could save in interest
How much earlier you could be mortgage-free
Amount and time savings highlighted in this online calculator act as a guide and may vary based on your lender. In order to create the results we’ve made the following assumptions:
Savings are calculated based on the mortgage information you have provided us
Based on a repayment mortgage
Overpayments will have the effect of reducing your mortgage term
Interest is calculated daily and added monthly
Monthly overpayments remain the same over the term of the mortgage
Your rate of interest always stays the same
No changes to your mortgage which would result in a recalculation of your monthly payment
Estimations are provided on a non-advised basis. Click here to read our full Terms & Conditions.
*The total projected amount Sprive users are on track to save by making mortgage overpayments via the app. The savings are an estimated value as of the 30 th August 2023.
The calculator is for illustrative purposes only. It does not provide a precise calculation of the time or interest you could save, but is intended to give you information and guidance about the potential savings. Please note the calculator does not factor in any charges for early repayments of the total mortgage balance and is based on a capital repayment mortgage.
Save money on your mortgage with Sprive
Set aside money
Our algorithm analyses your spending each week and sets aside the perfect mortgage overpayment amount.
The less you spend, the more we set aside without ever impacting your lifestyle. Mortgage overpayments can be made in just one tap.
Pay off your mortgage
while you shop
Do your shopping with Sprive and we'll give you extra cash to put towards your mortgage the same day. You'll be amazed at the difference it makes!
We've partnered with the UK's leading brands.
We compare your mortgage across 90+ lenders every day to help you find your next deal.
You can see personalised deals within the app and when it’s time for you to remortgage we’ll help you switch hassle-free, by connecting you with a vetted expert.
“Super useful app to help you pay off your mortgage more quickly - you can choose how much you overpay each month depending on how much money you have in your account.”
Have a question about overpayments?
Check out our FAQ’s
What are mortgage overpayments?
Mortgage overpayments are when a borrower pays more than their required monthly mortgage payment. This helps reduce the overall balance owed by applying the additional payment directly to the principal of the loan. For example, if the monthly mortgage payment is £1,000 and the borrower makes an overpayment of £200, £200 will be applied directly to the principal balance, reducing the overall amount owed on the loan.
What's the quickest way to pay off a mortgage?
For most homeowners, our view is that the quickest way to pay off a mortgage is to download the Sprive app which will help you regularly make additional payments towards the principal balance without impacting your lifestyle.
If you can afford to you can make a lump sum overpayment that's equal to your annual overpayment allowance. You can visualise the impact by using our online mortgage overpayment calculator.
How much can I overpay each month?
The amount you can overpay will depend on the lender you are with and the mortgage product you are on. The majority of lenders will allow you to pay up to 10% of the outstanding balance. However, this can vary and thus, it is better to view your mortgage offer document, check online or speak to your lender to be sure.
You can find out how much you can overpay by asking your lender, checking your mortgage offer document, or checking online.
Am I eligible to make overpayments?
Eligibility for overpayments will depend on the terms of your mortgage agreement. Some mortgages may have restrictions on early repayment, while others may allow overpayments without penalty. Check with your lender or read your mortgage offer document to find out the specifics of your mortgage agreement.
How can I make regular monthly overpayments?
Simply head to the app store and download the Sprive app.
What are the benefits of overpayments?
Mortgage overpayments can help to reduce your mortgage balance, the overall amount of interest paid on a mortgage, shorten the loan term, and build equity in the property at a faster rate. You'll be amazed by the total interest you can save by making overpayments. This can also help to increase your credit score and decrease the likelihood of default. Additionally, paying down the loan balance faster can significantly reduce your financial stress and simultaneously free up cash flow, which can be used for other financial goals.
Making overpayments can also help reduce your loan to value, which can increase your chances of securing a better deal when you next remortgage.
You can visualise the impact by using our online mortgage overpayment calculator.
What are the risks associated with overpayments?
The main risk associated with overpayments is the potential for early repayment charges, which can be significant. Additionally, overpaying on a mortgage may not be the best use of funds if other financial priorities exist, such as building an emergency fund or paying down high-interest debt.
It's important you can afford making the normal monthly payment associated with your mortgage before you make overpayments. Failing to make your mortgage repayments could result in your home being repossessed.
Is there a penalty for making overpayments?
If you overpay above the limits set by your lender, then they could charge you an early repayment charge. This charge will be on the amount you have overpaid. The banks typically set a 1% to 5% penalty to prevent you from repaying your mortgage too quickly.
What are Early Repayment Charges?
An early repayment charge is a penalty applied by the lender if you repay more on your mortgage than the permitted amount during your tie-in period. Early repayment charges are typically found on fixed and discounted variable rate mortgages. With the Sprive app you can track how much of your annual allowance you’ve used to help you prevent being hit by an early repayment charge.
When are ERCs applicable?
There are various scenarios where ERCs can apply, such as when you:
- Make significant repayments – making a sizable overpayment on your mortgage that breaches the threshold outlined in your mortgage offer document would result in your lender applying an ERC penalty.
- Move home – if you are moving house, you may have to switch lenders. If you are part way through your initial deal period for your fixed or discounted deal then you are likely to be charged an ERC penalty.
- Switch mortgage deals early – you may decide that you want to move to a different mortgage product within the same lender or different lender whilst you are in your deal period. If that is the case you are likely to be subject to ERC.
- Pay off your mortgage – perhaps you’re approaching retirement and want to use your savings to pay off your mortgage with a lump sum or maybe you have received some inheritance. By paying the entire outstanding balance of your mortgage, you may be subject to large ERC penalties.
How can I avoid Early Repayment Charges?
- Choose a mortgage deal with no ERC (Early Repayment Charge) and with flexible overpayment options if you plan to pay more than 10% of your loan in a single year.
- Port your mortgage deal when moving home to apply the same deal and interest rate to the mortgage on your new property.
- Pay up to the overpayment limit (usually 10% of the loan value) without penalties, keep track of the total amount paid and check your mortgage offer document, or contact your lender to confirm the details. Consider waiting until the ERC period ends or switching from the SVR, which can be expensive, before overpaying large amounts.
Is it better to make overpayments monthly or in lump sum?
The choice between monthly overpayments and lump sum overpayments will depend on personal preference and financial circumstances. Making monthly overpayments can help to build equity over time and may be easier to budget for, while lump sum payments can provide a larger reduction in the overall balance and interest paid. If you’ve saved up a good amount of money that you’re willing to contribute to your mortgage, then a lump sum may be a good option for you!
Is it smart to pay extra on your mortgage?
Paying extra on a mortgage can be a smart financial decision if it is done strategically and does not come at the expense of other financial priorities. It can help to reduce the overall interest paid and shorten the loan term, ultimately saving you money in the long run.
Use Sprive's smart overpayment calculator to find out how much money you could save in interest and how much earlier you could be mortgage-free.
Is it better to pay the principal or interest?
When making extra payments on a mortgage, it is typically better to pay towards the outstanding mortgage balance rather than the interest. This will help to reduce the overall balance owed and ultimately decrease the amount of interest paid over the life of the loan.
Paying towards the principal balance reduces the interest that accrues on the loan, saving you money over the loan period. It also helps to build equity in the property at a faster rate, which can be beneficial if you decide to sell or refinance the property in the future.
Is it better to overpay or reduce term?
The answer to this question depends on your personal and financial circumstances. If you are seeking to become debt-free as quickly as possible and can afford the higher monthly payments, reducing your mortgage term may be the better option.
However, if the goal is to reduce the overall interest paid and build equity at a faster rate while still having the flexibility to make extra payments as desired, overpaying may be the better choice. You can always use our overpayment calculator and the Sprive app to help you decide what is right for you.
We recommend you should consider their individual circumstances and consult with a financial advisor to determine the best approach for their situation.