Mortgage overpayments are something that I am really passionate about, and mortgage providers are also trying to encourage their borrowers to make overpayments where they can.

What are mortgage overpayments?

A mortgage overpayment is an extra payment you make to your mortgage, above your usual monthly mortgage payment. By overpaying your mortgage you can either shorten the term of your mortgage or lower your monthly payments throughout the term.

This means that you can be in a good position to pay off your mortgage balance faster, and save lots of money in interest over the course of your mortgage term.

You can choose to make overpayments as a one-off or set up regular overpayments.

Every mortgage provider and mortgage type is different, but it is quite common to have an allowance of 10% of your remaining mortgage balance for overpayments every year (January – December).

Any payments made over this amount could lead to an early repayment charge, so when you are making mortgage overpayments you want to bear that allowance in mind.

Should you overpay your mortgage?

There are lots of things to consider before you start overpaying your mortgage.

If you have other consumer debts, like high interest credit cards then it might be worth paying them off first before making mortgage overpayments, since your mortgage is typically at a much lower rate of interest.

You should also have an emergency fund in place to cover any emergencies that might crop up, whether they are related to your home or not.

You should also consider how much making mortgage overpayments might impact your budget.

How much should you overpay on your mortgage?

When it comes to overpaying your mortgage every little helps.

You don’t need to wait until you have a big bonus at work or a huge lottery win to make an overpayment on your mortgage.

In fact, just swapping one takeaway to a fakeaway just once a month could free up £25 to overpay on your mortgage. It might not sound like much, but let’s take a look at how a regular overpayment of £25 a month on a £150,000 mortgage at 1.92%, with 24 years remaining can save you money.

By making a £25 a month overpayment on your mortgage you will save £1,850 in interest AND be mortgage free an entire year and 1 month earlier.

Fakeaway ideas:

Imagine if you could double your efforts and cook two fakeaways a month, sending a £50 overpayment to your mortgage every month.

By making a £50 a month overpayment on a mortgage of £150,000 at 1.92% interest with 24 years left, you can save a massive £3,523 in interest AND be mortgage free 2 years and 1 month earlier. Wow!

How to save money on your food habits

If this has inspired you to save money on your food shopping and eating habits in order to make overpayments to your mortgage then here are some ideas to help you to get started.

Pack your own lunch for work

A meal deal can easily set you back £3.50 a day, so switching to homemade sandwiches and taking in your own snack from a multipack can cost you a fraction of the cost of a meal deal. Give up your meal deals just twice a week and monthly you will have an extra £30 to overpay your mortgage with.

Shop at the yellow stick shelves

You know how much I love a yellow sticker shelf – not only do you save lots of money but you can also try out foods that you might not normally look at.

The savings you can make from shopping at the reduction shelves will vary, but I estimate that you can easily save £20 – £50 a month to overpay your mortgage with.

Meal plan

Meal planning is fantastic if you struggle to come up with ideas for what to eat, but it can also save you money because you are only shopping for what you need to use that week to create meals for your family.


I hope that these ideas have inspired you to consider making small swaps in order to make overpayments on your mortgage.