Overpayment (mortgage)
A mortgage overpayment is an extra payment beyond the required monthly amount. It can reduce the balance faster and cut total interest.
Last verified: 10/03/2026
Definition
A mortgage overpayment is an extra payment made on top of your required monthly payment.
Why it matters
If the overpayment reduces the balance, it can:
- reduce total interest paid over time
- shorten the mortgage term
Practical caveat
Some mortgage products have limits or charges for overpayments during fixed periods. Always check your mortgage terms before making large changes.
Related terms
- Amortisation
- Repayment mortgage