Here are some examples to show you how much of a difference overpaying can make.
MONTHLY OVERPAYMENTS
An amount that you choose to pay on top of your usual payment
Example
The following examples use an outstanding balance of £80,000 over 10 years on an interest rate of 9.39%*.
| Overpayment amount | Repayment type | Time saved | Balance reduction | Interest saved |
|---|---|---|---|---|
| £50 | Repayment | N/A | N/A | £1,740 |
| £50 | Interest only | N/A | £6,266 | £2,913 |
| £100 | Repayment | 1 mth | N/A | £3,477 |
| £100 | Interest only | N/A | £12,531 | £5,827 |
| £200 | Repayment | 4mths | N/A | £6,926 |
| £200 | Interest only | N/A | £25,063 | £11,654 |
*These calculations are for illustrative purposes only and assume that the interest rate will remain the same for your remaining term. Figures rounded to nearest pound (£).
- If you pay by Direct Debit and would like to set up a regular monthly overpayment, please call us on 0330 159 7152.
Phone lines are open between 8:30am and 6:00pm Monday to Friday. - If you pay in any other way simply increase the amount you pay.
ONE-OFF OVERPAYMENT
Example (Repayment mortgages)
If you have a repayment mortgage and you make a one-off payment, you can choose to reduce your monthly payments or keep your payments the same but reduce the term (which means you’ll pay off your mortgage sooner).
The following examples use an outstanding balance of £80,000 on a repayment basis over 10 years on an interest rate of 9.39%*.
If reducing the term…
| Overpayment amount | Time saved | Interest saved |
|---|---|---|
| £500 | 1 mth | £762 |
| £1,000 | 2 mths | £1,512 |
| £2,500 | 6 mths | £3,694 |
| £5,000 | 11 mths | £7,110 |
Or if reducing the monthly payment…
| Overpayment amount | Payment reduction | Interest saved |
|---|---|---|
| £500 | £6 | £271 |
| £1,000 | £12 | £541 |
| £2,500 | £32 | £1,351 |
| £5,000 | £64 | £2,700 |
*These calculations are for illustrative purposes only and assume that the interest rate will remain the same for your remaining term. Figures rounded to nearest pound (£).
Example (Interest only mortgages)
If you have an interest only mortgage, making a one-off payment will reduce the amount of interest you pay and the amount you need to pay back at the end of the term.
The following examples use an outstanding balance of £80,000 on a interest only basis over 10 years on an interest rate of 9.39%*.
| Overpayment amount | Payment reduction | Interest saved |
|---|---|---|
| £500 | £4 | £466 |
| £1,000 | £8 | £931 |
| £2,500 | £19 | £2,327 |
| £5,000 | £39 | £4,654 |
*These calculations are for illustrative purposes only and assume that the interest rate will remain the same for your remaining term. Figures rounded to nearest pound (£).