Is overpaying your mortgage worth it?
Every pound you overpay reduces the balance that interest is charged on, so the savings compound over time. As a rule of thumb, overpaying makes sense when your mortgage rate is higher than the after-tax interest you could earn on savings. You also need an emergency fund and no more expensive debts such as credit cards.
Check your overpayment allowance
Most fixed and tracker deals let you overpay up to 10% of the balance each year without an early repayment charge (ERC). Go over that and you could pay 1-5% of the excess. Check your mortgage offer or ask your lender before making a large lump-sum payment.
Reduce the term or the payment?
Lenders usually let you choose between keeping the same monthly payment and finishing earlier (more interest saved) or lowering your monthly payment. This calculator shows the first option.