Your mortgage is likely the most expensive debt you will ever take on. Because the loan is so large and the term is so long (often 25 or 30 years), the compound interest is staggering.
However, this also means that even small, regular overpayments can have a massive impact. Paying just £100 extra a month can knock years off your term and save you tens of thousands of pounds in interest.
Overpayment Savings
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The 10% Overpayment Limit
If you are on a fixed-rate mortgage deal, most UK lenders will allow you to overpay by up to 10% of your outstanding balance each year without incurring an Early Repayment Charge (ERC).
Always check your specific mortgage terms and conditions before making a large lump-sum overpayment to ensure you do not trigger penalty fees.