Reducing a 30-year mortgage term by 10 years can significantly lower the total interest paid. One option is switching to a shorter term, which increases monthly repayments but accelerates capital reduction. Alternatively, making regular overpayments can gradually reduce the balance more quickly.
Many lenders allow overpayments of up to 10% of the outstanding balance per year without penalty, although this varies by product. Even modest monthly overpayments can have a noticeable impact over time. Lump sum payments, where permitted, can further reduce interest costs.
Before increasing repayments, it is sensible to maintain emergency savings and confirm any overpayment limits to avoid charges. A structured plan is usually more effective than occasional, irregular payments.
If you’re reviewing your structure, our House Remortgaging page outlines your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.