More about Overpayments

For most of us, a mortgage is the biggest financial commitment we’ll ever take on.

And because of the way interest is calculated (usually on a daily basis and over such a long time), homeowners can end up paying back tens of thousands of pounds on top of the original amount borrowed.

The only proven way to minimise the impact of this is by making overpayments.

Accelerate with overpayments

Every time you make an overpayment, the payment is reflected in your balance almost immediately and this stops interest continuously building up on the amount.

In other words, every £1 overpaid on your mortgage can be worth significantly more because of this multiplying effect.

Our rewards scheme links into this perfectly, but you may want to go up a gear and pay your mortgage off even faster by making voluntary overpayments (as a regular amount, or as a one-off lump sum).

This is why we give you access to personalised overpayment tools and calculators - so you can get to grips with the true power of overpayments for you and your mortgage.

How do I overpay my mortgage?

Overpayments can be arranged directly with your mortgage lender, but please check out our must-read ‘Should I overpay my mortgage?’ and ‘Our guide to making overpayments’ support articles before officially setting anything up.

They provide lots of important information about overpayment limits (how much lenders typically allow you to overpay by), how to set them up correctly (to ensure they’re having maximum effect on your reducing balance), and other important overpayment health tips.

Tracking your overpayments

Log into Accelerate My Mortgage and head to ‘Explore overpayments’. From here, you’ll be able to:

• Select an age you’d like to be mortgage free by, or
• Select a regular monthly overpayment amount within your desired budget, or
• Select a one-off lump sum overpayment

We’ll then calculate how much interest you’re on track to save, and how much sooner (in years and months) you can expect to become mortgage free.

You’ll automatically receive an email to confirm what you’ve set up, but you can change your overpayment settings at any point within the Accelerate My Mortgage portal.

Please remember that the more accurate and timely information you give us, the more accurately we can track your overpayments.