Should you overpay on your mortgage?
It’s tempting to start overpaying if you can, but there are things you should think about before you do. Overpaying could mean lower monthly payments and flexibility with future payments when it’s needed.
More things to consider
Overpayments will not always lower your mortgage term. Whenever we work out your monthly payment, we will use the reduced balance to work out the new payment over your existing term. If you want to reduce your term you will need to speak to one of our mortgage advisers to discuss your options. There are also limits on what you can overpay before you may be charged an early repayment charge. You should check with your mortgage provider before you decide to overpay. You should make sure you have savings in place for emergencies, rather than using all your money on your mortgage.