Mortgage free: The simple way you could pay less – but borrowers warned to watch out

Paying off a mortgage is a huge achievement, and with those who are mortgage free no longer facing the monthly expenditure, it may mean the homeowner finds themselves with additional disposable income each month. However, with the average mortgage term spanning 25 years, according to The Money Advice Service, paying off a mortgage in full can be a lengthy process.


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However, some may look into trying to pay off their mortgage sooner rather than later.

Whether its to save themselves money in interest or to alleiviate the pressure of needing to meet mortgage payments each month, there are many reasons why borrowers may choose to pursue this financial milestone.

For some, making overpayments may be an option – and this could potentially help a person to become mortgage free.

It’s something which Miles Robinson, Head of Mortgages at online mortgage broker Trussle, has addressed.

Speaking to, he said: “It is possible to reduce the term of your mortgage by making an overpayment.

“This will not only cut down on the time it will take to repay your mortgage in full, but you will pay less money overall by lowering the amount borrowed, and therefore interest payable.”

So how can a person go about making an overpayment?

“There are several ways you can make an overpayment,” Mr Robinson said.

“You’ll have agreed a monthly mortgage repayment with your lender based on the type of mortgage you have, the amount you borrowed and your agreed term.

“An overpayment simply involves making an additional payment on top of your required monthly amount.

“To do this, you can make an overpayment in one single lump sum, negotiate with your lender to make a regular overpayment each month or combine both options.”

Mr Robinson highlighted a way in which people could determine what the best approach may be for them – by using a mortgage overpayment calculator.


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“It’s worth using a Mortgage Overpayment Calculator to work out the best approach and see how an overpayment will make a difference to your mortgage term,” he said.

“Overpaying on your mortgage will enable you to reduce the amount you owe and provide some flexibility for the future, where you may want to reduce payments due to other life commitments, such as expanding your family or making a home improvement.”

Mr Robinson also warned borrowers that they should watch out when it comes to terms and conditions, as it may be they face an Early Repayment Charge (ERC).

“How much you can overpay will depend on the terms and conditions of your original mortgage,” he explained.

“You should read these carefully as some lenders impose an Early Repayment Charge for paying your mortgage off early.”

Another factor to think about is savings for other financial outgoings, as it may be that some people need to set aside some money in case of unprecedented circumstances – rather than putting it all towards the mortgage.

“You should also take into consideration your savings, keeping some money aside for unexpected emergency costs should you need it,” he said.

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