Making overpayments on your mortgage allows you to pay off your loan faster, reduce the total interest paid, and shorten your mortgage term. Overpayments can be made in two ways:

• Regular Overpayments – Increasing your monthly mortgage payments beyond the required amount.
• Lump-Sum Overpayments – Paying a larger one-off amount from savings, bonuses, or offset mortgages.

Before making an overpayment, check with your lender to ensure the extra funds are applied directly to the capital balance rather than just reducing future payments. Also, be aware that some lenders impose restrictions or fees on overpayments, so reviewing your mortgage terms is essential before proceeding.

The amount you can overpay without penalties depends on your mortgage lender and the terms of your loan. Many lenders allow you to overpay up to 10% of the outstanding balance per year without incurring fees, but this varies. If you’re unsure about your lender’s overpayment policy, it’s best to contact them directly to confirm any restrictions, limits, or potential charges.

While overpaying can save you money on interest and help you become mortgage-free sooner, it’s important to consider other financial priorities before committing extra funds. Building an emergency fund, paying off high-interest debts, or investing in retirement savings may offer better financial benefits depending on your circumstances.

Ultimately, deciding whether to overpay your mortgage depends on your financial goals and overall situation. If you’re unsure, seeking advice from a mortgage specialist or financial adviser can help you determine the best strategy for your long-term financial health.