Updated May 2026 · 8 min read
Should I Overpay My Mortgage in 2026?
Overpaying your mortgage can save you thousands of pounds and shave years off your term. But it is not always the right move. Here is everything you need to know.
What is a mortgage overpayment?
A mortgage overpayment is any payment above your standard monthly mortgage amount. Even £100 extra per month can make a significant difference over the lifetime of your mortgage.
When should you overpay your mortgage?
Overpaying makes sense when your mortgage interest rate is higher than the interest you could earn in savings. With many UK savings accounts still offering rates below mortgage rates in 2026, overpaying often wins financially.
You should also consider overpaying if you want to reduce your loan-to-value (LTV) ratio to access better mortgage rates when you remortgage.
When should you NOT overpay?
Do not overpay if you have high-interest debt such as credit cards or personal loans — pay those off first. Also keep an emergency fund of 3–6 months' expenses before making overpayments. If your savings rate exceeds your mortgage rate, saving is better.
How much can I overpay?
Most UK lenders including Nationwide, NatWest, and Halifax allow overpayments of up to 10% of your outstanding balance per year without early repayment charges. Always check your mortgage terms before overpaying.
How much could I save?
Use our free mortgage overpayment calculator to see your exact savings. As an example, overpaying £200/month on a £200,000 mortgage at 4.5% with 25 years remaining could save over £30,000 in interest and cut 5+ years off your term.
How do I start overpaying?
Contact your lender directly to set up regular overpayments or make a one-off payment. Most UK lenders including Nationwide, NatWest, and Halifax allow this online or via their app.
Ready to see your savings?
Use our free calculator to see exactly how much you could save by overpaying.
Try the Calculator →