How much can you overpay your mortgage each year?
Many UK lenders allow up to 10% a year without a charge. See how overpayment limits work, what early repayment charges apply and how to check yours.
By Asis Tewari Published · Last reviewed · 2 min read
The short answer
Many UK lenders let you overpay up to 10% of your balance each year without an early repayment charge, but terms vary by lender and by deal. Your mortgage offer sets out your exact allowance. Go over the limit during a fixed or discounted period and you may pay an early repayment charge on the excess.
Key takeaways
- Many lenders allow overpayments of up to 10% a year without a charge, but check yours.
- Charges usually apply during a fixed or discounted period.
- An overpayment can shorten your term or lower your monthly payment, depending on your lender.
What is an early repayment charge?
An early repayment charge is a fee a lender may charge if you repay more of your mortgage than your deal allows, or if you leave the deal before it ends. They usually apply during fixed-rate, tracker or discounted deals, and are often worked out as a percentage of the amount you repay early.
How does a 10% overpayment limit work on a £200,000 balance?
For illustration only, if a mortgage allowed a 10% annual overpayment and the outstanding balance were £200,000, that would be £20,000 in a year. Some lenders measure the allowance against your original loan rather than your current balance. Lenders also differ on when the year starts, so yours may run from 1 January, your mortgage anniversary or your deal start date.
How do you find your overpayment limit?
- Check your mortgage offer or key facts document.
- Look in your lender's online account or app. Many show how much you have overpaid this year.
- Call your lender and ask what you can overpay without a charge.
Can you overpay after your fixed rate ends?
Once the fixed period ends, many lenders allow overpayments with no charge. Check this before you plan.
Should you overpay monthly or in lump sums?
Most lenders accept both. Regular monthly overpayments are easy to automate and to keep within your allowance. Lump sums can be useful if you receive a bonus or inheritance, but check your allowance first. Depending on your lender, an overpayment can shorten your mortgage term or reduce your monthly payment, so ask which applies to you.
Is overpaying your mortgage the only option?
Some homeowners put spare cash into investments instead, or split it. Overpaying is a guaranteed saving on interest, but the money is usually locked into your home once paid. Read should I overpay my mortgage or invest? for the trade-offs. Capital at risk on anything invested.
Sources
- MoneyHelper: Should you pay off your mortgage early? (accessed 3 October 2026)
- Halifax: Early repayment charges (accessed 8 October 2026)
Mortgage decisions, made clearer
Get occasional insights on overpayments, investing and fixed-rate changes, without the jargon.
This guide is for information only and is not personal advice. Tax treatment depends on your individual circumstances and may change. If you invest, your capital is at risk. The value of investments can go down as well as up, and you may get back less than you invest. Your home may be repossessed if you do not keep up repayments on your mortgage.