Underpayments and overpayments

We can help you learn more about overpaying and underpaying your mortgage repayments.

 
A couple using a tablet

Explaining overpaying and underpaying

Generally, mortgage repayments are for the same amount each month. But some mortgage deals offer the chance to either overpay or underpay your regular amount.

We’ll explain why it's good to make overpayments if you can, how to overpay or underpay and things to think about first.

How it works

Overpaying

When you pay more than your regular repayment amount.

This could be a lump sum or by increasing your regular monthly repayments.

Underpaying

When you pay less than the regular repayment amount.

You may be able to do this if you have overpaid your mortgage and you have less owing.

Why should I make overpayments?

If you're comfortably making your monthly mortgage repayments, overpaying could help you save money. By overpaying, you’ll lower the total amount you owe quicker. This means you could repay your mortgage faster and pay less interest.

Depending on the type of mortgage deal you have, you can either make monthly overpayments or pay lump sums. Generally, up to 10% of your contractual mortgage payments.

But it’s not for everyone. Some people prefer to put extra money they have into a savings account instead.

Check your mortgage conditions before you make overpayments. You may be charged a fee or there could be an overpayment limit. Every mortgage deal is different. ​

How will overpayments affect my mortgage?

Overpaying can reduce the term remaining and reduce the amount of interest you pay, depending on your mortgage.

See what overpaying does to your mortgage with this overpayment calculator.

You’ll need:

  • the amount you still owe your mortgage
  • how long you have left to pay it back
  • your current mortgage interest rate
  • how much money you want to overpay on your mortgage. This could be either monthly or in a lump sum. 

How does overpaying on an interest-only mortgage work?

With an interest-only mortgage, your monthly repayment covers the interest you are charged for the mortgage loan.

The value of your mortgage must then be paid in full at the end of the term.

Overpaying on an interest-only mortgage wouldn’t reduce the amount of interest you pay. It would reduce the amount that you need to pay off at the end.

How does underpaying your mortgage work?

You may be able to pay less on your mortgage repayments if you’ve already made an overpayment. Your lender may let you underpay the same amount you overpaid.

Always check with your mortgage provider before you make any changes to your monthly repayments.

Find out more about payment holidays

Can't make your mortgage payments?

We're here to help you figure this out. The sooner you get in touch to let us know, the more options you’ll have.

Get in touch

Already a Lloyds mortgage customer?

Lloyds has signed up to the government’s Mortgage Charter to help give our customers the right help when they need it.

Mortgage support I'm an existing customer

You could lose your home if you don’t keep up your mortgage repayments.

You may also like

Remortgage calculator

Use the calculator to see if you could save by moving your mortgage to Lloyds.

Remortgage calculator

Moving house costs

Learn about the costs associated with moving home.

Moving house costs

Get in touch

You can call us or book a video mortgage appointment from the comfort of your own home. 

Contact us

Remortgaging help

Remortgaging is when you get a new mortgage deal with a different provider. Make sure you're in a good position to make a decision with our guides on remortgaging.

Remortgaging help

Remortgaging help

Remortgaging is when you get a new mortgage deal with a different provider. Make sure you're in a good position to make a decision with our guides on remortgaging.

Remortgaging help

Important legal information

Telephone calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help us improve our quality of service.