See how monthly mortgage overpayments shorten your term and cut total interest (UK-style term reduction).
| Input | Result |
|---|---|
| £150,000 at 4.5%, 20 yrs left, +£100/mo | 206 months instead of 240 (2.8 years earlier) · £12,413 interest saved |
| £200,000 at 5%, 25 yrs left, +£200/mo | 226 months instead of 300 (6.2 years earlier) · £41,843 interest saved |
| £100,000 at 3%, 15 yrs left, +£50/mo | 165 months instead of 180 (1.3 years earlier) · £2,151 interest saved |
Paying more than your required monthly repayment, with the extra going straight to the principal. On most UK mortgages this reduces the term and total interest rather than the monthly payment.
In the UK, overpaying typically keeps your monthly payment the same and shortens the term — that is what this calculator shows. Recasting (more common in the US) re-amortizes to lower the payment while keeping the term.
Many UK deals allow 10% of the balance per year penalty-free; beyond that an early repayment charge (ERC) may apply — typically 1–5%. Check your offer document before overpaying.
If your mortgage rate is higher than the after-tax return on savings, overpaying wins mathematically — but keep an emergency fund first, since equity in a home is hard to get back out.