It can be tempting to overpay on your mortgage if you can. But there are things you should think about before you do.
Overpaying could mean lower monthly payments or it might help you pay off your mortgage quicker. Overpayments reduce your mortgage balance and will save you interest.
You may be charged for overpaying more than your lender allows. This is called an early repayment charge. Check with your lender before you make an overpayment.
More things to consider
Overpayments will not always lower your mortgage term. When 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 check with your lender.
It might be tempting to overpay by as much as you can. But if you overpay, you won’t be able to withdraw the extra money paid at a later date. It’s a good idea to keep savings aside in case of emergencies.