Paying Off a Mortgage Early | NatWest

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Paying off your mortgage early

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Your home may be repossessed if you do not keep up repayments on your mortgage

NatWest mortgages are available for over 18s.

Weighing up your options

With so many conflicting options, it can be challenging for homeowners to decide what to do with their surplus money. Here we weigh up the key factors to help you make an informed decision.

Drawbacks of paying your mortgage off early

  • Some mortgages have a limit or minimum amount on overpayments, and paying outside these may incur some hefty penalty charges – speak to your provider to find out the best option for you.

Benefits of overpaying your mortgage

  • Once you've weighed up the risks involved, there are many reasons overpaying your mortgage might be of benefit to you – and perhaps the biggest plus point is the amount you could save in interest.
  • Depending on how much extra you can afford to pay back, you could potentially cut years off your mortgage term. 

Other things to consider

  • If you do decide to pay off your mortgage early, make sure you deliberate the finer details with your lender. Check when it is best to overpay too. With most contemporary mortgages, the time should not make a difference, but with older mortgages you may be better off making one lump payment at the end of the year.
  • If you find yourself debt-free apart from your mortgage, you could consider saving some rainy day money for those unexpected moments life has a habit of throwing at you.
  • Whether it's a big purchase like replacing a broken-down boiler, or changes to your circumstances such as a new baby, it's worth taking the time to think about your situation before piling spare cash into your mortgage.
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Add your signposting title here… Is it beneficial to pay off a mortgage early?

If you own your own home and find yourself with some spare cash each month, it can certainly be tempting to try and make a dent in your debt, but it’s important to weigh up your options first to understand what would be best for you. 

On one hand, you might prefer to pay off any existing debt as quickly as possible, especially given the tentative state of the economy in recent years. On the other hand, with interest rates so low at the moment you might feel there is little point in paying your mortgage off before the agreed term and potentially find yourself lumbered with unexpected early repayment charges in the process. 

Ultimately, the merit of paying off a mortgage early is dependent on individual circumstance and is something to be discussed with your mortgage provider.


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