This mortgage overpayment calculator helps you see how even small additional payments can help you pay off your mortgage years faster in the UK. See how much faster you will pay off your mortgage in addition to the amount you would save in interest over that period of time.
How this mortgage overpayment calculator works
This UK mortgage overpayment calculator helps to calculate how much faster you will be mortgage free when overpayments are made in addition to your regular mortgage payments. You will have to input your total mortgage amount, the mortgage interest rate that you have on your mortgage as well as the amortization period. Then add in the additional overpayments you expect to make, either as a one-time lump sum or regular additional payments.
This will help calculator how much faster you will be able to pay off your UK mortgage. Since you will repay the principal of the loan faster than initially expected, you will also save on the interest expense that would have otherwise been charged on the balance of the loan.
What to consider before making overpayments
Ensure that your lender allows you to make overpayments on your mortgage payment to avoid incurring any additional penalties. You should also consult your lender to see how additional overpayments will impact your mortgage balance and the total time it takes to pay off your mortgage. You will also need to ensure that additional payments go towards reducing the debt outstanding on your mortgage to benefit from any overpayments that will be made.
Since the money that you are using as additional payments to your mortgage could be used to invest elsewhere, it is important to understand how this money could be invested otherwise, such as in a Individual Savings Account (ISA).