Скачать или смотреть What are mortgage Overpayments?

Mortgage overpayments are cash payments above the agreed amount of the regular, monthly mortgage repayments. They can be created as regular, ongoing overpayments (weekly, monthly, quarterly etc.) or as a single, one-off lump sum payment.

When making overpayments, lenders will credit the payment amount to your mortgage loan balance. This means that overpayments can be used to build equity and lower the outstanding mortgage balance.

When taking out a mortgage, customers will typically create a direct debit for a regular monthly payment amount. However, most deals will allow for an additional amount of repayment, at the customer's discretion, called an overpayment. The additional amount will be used to reduce the overall loan and bring it to an end faster.

Popular reasons to make overpayments include:
paying off the mortgage earlier
reducing the total cost of the mortgage
getting into a lower LTV bracket to make the next remortgage cheaper, on a better interest rate.

Over time, mortgage payments will decrease for customers that regularly overpay, because the outstanding balance (that attracts interest) gets smaller with each payment made.

Not all mortgages allow overpayments. And those that do, may come with restrictions on how much can be repaid, such as a 10% yearly allowance.

Customers wishing to overpay should check their terms and conditions, to ensure they comply within their rules for Early Repayment Charges.
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Your home (or property) may be repossessed if you do not keep up repayments on your mortgage.

These videos are not intended to provide professional mortgage advice and should not be relied upon or regarded as a substitute for such advice. The information contained within each video is for illustrative and information only. Information is aimed at UK consumers only. We recommend that you seek advice from a qualified professional mortgage advisor before acting on any information or other content appearing within these videos.