Can I make overpayments on my mortgage?

The answer for most people is yes you can!

Most lenders today will allow you to make up to a 10% overpayment of the outstanding balance in any year without incurring the early repayment charge. These early repayment charges are common in the initial fixed rate products offered by many mortgage lenders. Some other types of mortgages also come with an early repayment charge so check with your lender before agreeing to make an overpayment.

You normally just have to call your lender and they can set up your overpayments over the phone. You can make a lump sum or a regular payment with your monthly mortgage payment. It's up to you.

Most lenders calculate interest every day based on the mortgage outstanding. Even if your overpayment is relatively small, you get the immediate benefit of reduced interest. The money freed up from your normal payment is also used to reduce the capital even further in a virtuous spiral.