You'll save £ on your total repayment by overpaying your mortgage.
Your current mortgage balance is £20,000, remaining term is 10 years and interest rate is 3%.
If you decide to make £100 every month as over payment then your monthly payment will be £293 but your term will be shortened to 6 years and 3 months. The total amount you will pay back will be £21,956 and you will save £1,219 on your repayment by overpaying your mortgage.
Simply put, making overpayments on your mortgage means paying more than your usual amount each month. This could be a one-off sum or a regular additional payment. If you can, making mortgage overpayments can be a great way to lower both the amount of interest you pay on your loan overall, and the term of your mortgage.
Using an overpayment calculator for a mortgage is a great way to help you to work out how many months, or even years, you could knock off your loan, and how much interest you could save. They’re a good way to estimate your expenses before you commit to a regular payment and can help you decide if overpaying the mortgage is the best use for your cash. It’s important to remember, however, that some mortgages will only allow you to repay a specific additional amount each year (usually around 10% of the total mortgage). Paying back more than this could result in extra charges which won’t be included in the calculator.
Mortgage overpayment calculators are a great guide but may not provide specific information about your individual mortgage, so it’s essential to use the most accurate figures possible and contact your lender if you have particular questions. To use a UK mortgage overpayment calculator you’ll need to have the following information to hand:
If you’re not sure how to calculate your overpayments, the Nationwide overpayment calculator is an easy and straightforward tool to get you started. Whoever your specific provider may be, the overpayment calculator Nationwide offers is a good first step to see how much money you could save.
If you’re struggling with debt or managing your money, you can also access free financial management advice 24 hours a day at Step Change by phoning 0800 138 1111 .
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