Estimates from the figures entered, not advice. Rates change. Made at aurumwealth.co.uk.
This is not financial advice. The results are estimates worked out from the figures you enter. They assume a repayment (capital and interest) mortgage on one fixed rate for the whole term, with payments taken monthly and the extra paid every month.
Rates change, and many deals do not stay fixed for the whole term. Your lender may limit how much you can overpay without a charge, so check your mortgage terms or speak to your lender or a regulated adviser before you overpay.
See Aurum, the wealth ledgerHow overpaying works
Each month your lender adds interest to what you owe, then takes off your payment. Anything you pay above the normal payment goes straight off the balance you owe, so next month's interest is worked out on a smaller number. That effect builds over the years, which is why a modest extra amount can shorten a mortgage by a lot.
This calculator keeps your payment the same plus your extra, so the mortgage ends sooner. Some lenders can instead lower your monthly payment. Ask which your lender does by default.
Check before you overpay
- Early repayment charge. Many fixed and discounted deals let you overpay only up to a limit each year, often 10% of the balance. Paying more can trigger a charge.
- When your deal ends. This page assumes one rate for the whole term. Look up the date your current rate ends, because your payment is likely to change then.
- Your lender's rules. Ask whether the extra counts as a lump sum or a regular payment, and how fast it shows on your balance.