Shoe home - First Financial SolutionsThe concept of paying more to than you need on your mortgage to reduce your balance more quickly sounds like a no-brainer. Get it right and with overpaying you could be quids in. Get it wrong and you could be facing some nasty penalties.

This guide can help you decide if overpaying on your mortgage is the right move for you:

Greater flexibility 

One benefit of overpaying your mortgage is the flexibility of your repayments. You may have overpaid on your monthly repayments for a couple of months but should you came under fire financially a few months later your lender may allow underpayments from you.


Asking your mortgage provider to maintain the same monthly payments whilst you overpay your mortgage allows you to shorten the length of your mortgage term and pay off your mortgage off sooner. It’s a win-win!

Whilst it may sound as if overpaying is a fool-proof plan, there are some pitfalls to consider:

Always pay your debts

If you are planning on overpaying your mortgage, you should ensure that you have no expensive debts that need paying off first. Shorter term debts can be much more expensive than your mortgage and so only as those debts have been paid off, should you consider overpaying on your mortgage.

Will your lender allow it?

Some lenders have specific clauses that will issue penalties if you begin overpaying your agreed monthly repayments – after all, in the long run, overpayments mean that the expected return to the lender is reduced.  It’s crucial to check with your lender before beginning to overpay as penalty charges may be given.

If you would like any advice on your mortgage, contact us today. We are independent mortgage brokers based within the Neath area. We work to find you the best re-mortgaging solution and ensure you the best rate. Call us on 01639 262222 or click here to send us an email.

**Please be aware that your property may be repossessed if you fail to keep up with repayments on your mortgage.