Let’s face it, everybody wants to be mortgage-free! In order to become mortgage-free quicker, one option is to make overpayments on your mortgage. Even if it is only a small amount of overpayment every month, each extra pound will reduce the overall interest that you pay on your mortgage and reduce the overall term of your mortgage.

It is important to read the terms and conditions of your mortgage, when it comes to overpayments, as lenders can have restrictions on the amount you are permitted to overpay every year. For example, some lenders will only allow you overpay up to 10% a year, anything over 10% could cause to you to face a financial penalty. A mortgage adviser can help you understand the terms and conditions of your mortgage and will be able to explain the permissible amount to overpay on your mortgage.

The information contained within was correct at the time of publication but is subject to change. 02.05.2024

Your home may be repossessed if you do not keep up repayments on your mortgage.