Last updated: 16 August 2026
By Stiv · Design, technology and personal finance
I've had a Nationwide mortgage since 2021 and have been making regular overpayments using Sprive and manual standing orders throughout that time. These are approaches I use myself.
Disclosure: This article contains affiliate or referral links. If you click through and sign up I may earn a commission or referral bonus at no extra cost to you. It does not affect my editorial view.
Not financial advice. CoolCuration is not authorised by the Financial Conduct Authority. This article is for information only. Your home may be repossessed if you do not keep up repayments on your mortgage. Consider consulting a qualified mortgage adviser before making changes to your repayment plan.
Start with a sign-up bonus
If the automated overpayment route appeals, the current Sprive welcome offer and the claim steps sit on our referral page.
If you want to save thousands on your mortgage, the quickest wins come from cutting the cost of the loan itself. That is what this guide covers: getting off an expensive rate, timing your remortgage properly, trimming the term when you can afford to, and plugging the everyday leaks that quietly fund it all. If your goal is clearing the mortgage sooner rather than paying less for it, our guide to paying off your mortgage faster is the speed version of this page, and our overpayment savings page puts real numbers on either plan.
Serious about a cheaper mortgage? The tips are below. For everything we have written on Sprive, the app we use to overpay, see our Sprive guides hub.
Where mortgage rates stand
Before diving into tactics, here's the backdrop. The Bank of England base rate is 3.75%, held at that level again on 30 July 2026. The next Monetary Policy Committee decision is due on 17 September 2026.
When we last pulled the averages from Moneyfacts in early June 2026, average UK mortgage rates were approximately:
- Standard Variable Rate (SVR): around 7.13% on average
- Two-year fixed: around 5.64% on average
- Five-year fixed: around 5.60% on average
The exact averages move month to month, but the shape of the picture does not: if you're on an SVR, the gap between your current rate and a new fixed deal is likely significant. Getting off an SVR is often the single most impactful move available to you.
Why small changes add up to thousands
Mortgage interest is calculated on your outstanding balance. So every time you reduce that balance, even slightly, you also reduce the interest charged on it going forward. Over a 25-year term, these reductions compound quietly in the background. That means a few seemingly boring decisions made now can translate into significant savings later.
The earlier and more consistently you act, the more you stand to save. The key word is "consistently". One big gesture followed by nothing rarely beats a small habit that sticks.
One note on how our three mortgage guides fit together, so you read the right one. This page is about cutting the cost of the mortgage you have. Our pay off your mortgage faster guide is the speed plan for clearing it sooner. And our mortgage overpayment savings page is the numbers one, with worked examples and the calculator.
Get off an expensive rate first
Before anything else, check what rate you're currently on. If your fixed deal has ended and you've slipped onto your lender's Standard Variable Rate (SVR), you could be paying hundreds of pounds more each month without realising it.
According to MoneyHelper, SVRs are typically much higher than the best available fixed or tracker rates. With the average SVR at around 7.13% versus average two-year fixes at around 5.64% at our last check (per Moneyfacts, June 2026), switching can make a material difference for many borrowers.
A few practical points to keep in mind:
- Start comparing rates three to six months before your current deal expires.
- Factor in arrangement fees. A lower headline rate with a large fee isn't always cheaper overall.
- If you're unsure where to start, our easiest mortgage broker UK guide walks through the options.
- For timing advice, our when to remortgage UK guide covers the decision in detail.
Your home may be repossessed if you do not keep up repayments on your mortgage. Always take independent advice before remortgaging.
Overpay what you can (the short version)
Overpayments are the most talked-about way to save thousands on your mortgage, and for good reason. Even an extra £50 or £100 a month can shave years off your term and cut your total interest bill significantly. However, the strategy side deserves its own page, so we keep the full seven-step plan in our pay off your mortgage faster guide and just cover the essentials here.
The essentials are these. Most UK lenders allow overpayments up to around 10% of the outstanding balance each year without penalty, and going over that on a fixed deal can trigger Early Repayment Charges that wipe out the benefit, so check your allowance first via our mortgage overpayment UK explainer. Consistency then matters more than heroics. A standing order works if you are disciplined, while apps like Sprive automate the habit through Open Banking and add supermarket cashback that feeds the same pot; the current sign-up bonus sits on our Sprive referral code page. Finally, to see what your own numbers look like before you commit, run them through our mortgage overpayment calculator.
Use lump sums wisely, not recklessly
Bonuses, tax refunds, or money from selling things you no longer need can all be powerful if directed at your mortgage. However, the classic mistake is throwing every spare pound at the balance and then reaching for a credit card when something unexpected comes up.
A sensible approach looks like this:
- Keep an emergency buffer in place first, even a modest one.
- Then apply lump sums within your annual overpayment allowance.
- Check whether your lender processes lump sums differently from regular overpayments.
If you're weighing up whether spare cash should go to your mortgage or into investments, we've written about that trade-off in overpay mortgage or invest. The right answer depends on your rate versus the best savings or investment return you can realistically achieve.
Plug the quiet leaks and redirect the savings
You don't need to live on beans and toast. But most households have at least one or two quiet leaks: subscriptions nobody uses, delivery habits that crept up, or insurance policies that auto-renewed at a higher price.
Finding even £30 to £100 a month and directing it into overpayments creates a surprisingly effective savings loop. Importantly, it doesn't require earning more money. It just requires noticing where money is already going.
Some quick wins to consider:
- Switch energy providers if you're out of contract. Our Octopus Energy referral guide can help with that.
- Review mobile and broadband contracts annually.
- Use a spending tracker like Emma to spot patterns you might not notice otherwise.
Reduce the term when you remortgage (if you can afford it)
When your fixed deal ends and you remortgage, you usually have the option to shorten the remaining term. A shorter term means higher monthly payments, but substantially less interest paid overall.
This only makes sense if the higher payments are manageable through a difficult month as well as a good one. Nevertheless, even trimming a year or two off the term at each remortgage can compound into serious savings over time. See our when to remortgage UK guide for more on timing this decision.
Avoid the traps that cancel out your savings
Several common mistakes can undo the progress you've made:
- Overpaying beyond your allowance and getting hit with ERCs.
- Draining savings to overpay, then borrowing at a higher rate for emergencies.
- Not checking whether overpayments reduce the term or just the monthly payment.
- Forgetting to remortgage when your fixed deal ends and defaulting to an SVR.
If you want the full strategy for paying off your mortgage faster, including a step-by-step plan, our how to pay off your mortgage faster hub covers everything in order.
FAQs
How much can I realistically save by overpaying my mortgage?
It depends on your balance, rate, and remaining term. As a rough example, overpaying just £100 a month on a £200,000 mortgage at 5% could save you tens of thousands in interest and cut several years off the term. Use your lender's overpayment calculator or try our mortgage overpayment calculator to model your own numbers.
Is it better to overpay my mortgage or save into an ISA?
There's no single right answer. If your mortgage rate is higher than the interest you'd earn on savings or investments (after tax), overpaying generally wins on a numbers basis. But you also need accessible savings for emergencies. Tax treatment depends on the individual circumstances of each client and may be subject to change in future. We explore this in more detail in our overpay mortgage or invest guide.
Can I overpay if I'm on a fixed-rate mortgage?
Usually yes, up to a set annual limit (often 10% of the outstanding balance). Go beyond that and you risk Early Repayment Charges. Always check your specific mortgage terms before making extra payments. Our Sprive overpayment rules guide explains how to check.
Do I need an app to save thousands on my mortgage?
Not at all. A simple standing order to your lender works well. However, apps like Sprive can help if you struggle with consistency, because they automate the process and flex with your spending. Read our Sprive mortgage app review for an honest take on whether it's worth it.
What is the fastest way to reduce mortgage interest in the UK?
Getting off an expensive SVR onto a competitive fixed or tracker rate is usually the single biggest lever. With the average SVR at around 7.13% and average two-year fixes at around 5.64% at our last check (Moneyfacts, June 2026), the gap is substantial for many borrowers. After that, regular overpayments within your allowance have the most impact over time. Combining both is where the real savings stack up.
More from CoolCuration
- Best mortgage overpayment apps UK: Sprive, Chip, Plum, Emma and manual methods compared.
- Cut household bills UK: practical ways to trim your monthly outgoings and free up cash for overpayments.
- When to remortgage UK: timing your switch to avoid SVR and get the best available deal.
- Octopus Energy referral guide: switch energy provider and pick up a bill credit along the way.
- Best referral offers UK: over £400 in potential rewards from apps you might already use.
Your home may be repossessed if you do not keep up repayments on your mortgage. Rates and terms can change at any time. This is not financial advice. CoolCuration is not authorised by the Financial Conduct Authority. Always check your own mortgage terms and consider consulting a qualified mortgage adviser before making changes to your repayment plan.
This article is for informational purposes only and does not constitute financial advice. Mortgage rate averages are sourced from Moneyfacts (early June 2026); the Bank of England base-rate position was re-checked on 16 August 2026. Always check the latest rates and your own mortgage terms before making changes. Tax treatment depends on the individual circumstances of each client and may be subject to change in future.
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