Overpayment
An overpayment is any amount you pay towards your mortgage above your required monthly payment.
1 min read Buying a Home
What it means
An overpayment is any amount you pay towards your mortgage above your required monthly payment. Paying extra can reduce the amount of interest you pay over time.
Example
You normally pay £1,000 a month but decide to pay £1,100. The extra £100 is an overpayment.
Why it matters
Small overpayments can reduce the overall cost of your mortgage.
Many mortgages allow overpayments, but some have annual limits.
Can I overpay whenever I want?
Often yes, but check your mortgage terms.