Free financial calculator
Mortgage Overpayment: Reduce Term or Payment Calculator
See the trade-off between becoming mortgage-free sooner and lowering the required monthly payment after a lump sum.
Use the calculator ↓Adjust the assumptions
Mortgage Overpayment: Reduce Term or Payment Calculator
See the trade-off between becoming mortgage-free sooner and lowering the required monthly payment after a lump sum.
Result
£0
View year-by-year breakdown ＋
| Year | Contributions | Growth | Balance |
|---|
Questions answered
What this calculator helps you work out
- Should a lump-sum mortgage overpayment reduce the term or the monthly payment?
- How much more interest could keeping the original payment save?
- How far could a lump sum bring forward the mortgage-free date?
Common questions
Mortgage Overpayment: Reduce Term or Payment Calculator FAQs
Which option normally saves more interest?＋
Keeping the original payment usually saves more because the reduced balance is repaid faster.
Why would someone reduce the monthly payment instead?＋
It can improve monthly cash flow and flexibility, although the mortgage remains outstanding longer.
Does making a lump sum automatically shorten my term?＋
Not always. Lender treatment varies, so ask whether the payment, term or both will be recalculated.
Can early repayment charges change the answer?＋
Yes. Entered results exclude charges, so check the product allowance before paying.
Go beyond the result
Mortgage Overpayment: Reduce the Term or Lower the Payment?
See a worked example, the trade-offs to consider and the assumptions that can change the answer.