UK Mortgage Glossary
Overpayment
Paying more than required to reduce mortgage balance and interest cost.
Full definition
Extra payments on top of the required monthly mortgage payment. Reduces capital outstanding, which reduces total interest paid over the term. Most UK fixed-rate mortgages allow overpayments of up to 10% of the outstanding balance per year without ERCs. See the Overpayment calculator.
How this affects you
Whether overpayment is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.
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