Save Thousands on Your Mortgage UK: Practical Tips That Work (2026)

Last updated: 9 June 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.

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If you want to save thousands on your mortgage in the UK, you don't need a financial planner or a lucky inheritance. You need a handful of practical, repeatable moves that chip away at the interest you're paying every single month. This guide covers the changes that actually move the numbers, from switching to a better rate to automating small overpayments, so you can keep more of your money where it belongs.

The June 2026 mortgage picture

Before diving into tactics, here's where rates stand right now. The Bank of England base rate is 3.75%, held at that level on 30 April 2026 by an 8-1 vote. The next Monetary Policy Committee decision is due on 18 June 2026.

According to Moneyfacts data for early June 2026, average UK mortgage rates are 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

Rates eased slightly into June 2026 after rising earlier in the year. 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.

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 currently around 7.13% versus average two-year fixes at around 5.64% (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.

Make small, regular overpayments

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.

That said, there are rules. Most UK lenders allow overpayments up to around 10% of the outstanding balance each year without penalty. Go over that limit on a fixed-rate deal and you could face Early Repayment Charges (ERCs) that wipe out the benefit.

Before you start, check three things:

Your annual overpayment allowance and whether it resets each year.
Whether your lender applies overpayments to reduce the term or the monthly payment (you may be able to choose).
Any ERCs on your current product.

For a full breakdown of how overpayments work, limits, and what to watch out for, read our mortgage overpayment UK explainer. If you want the Sprive-specific rules on allowances and fees, that's covered in our Sprive overpayment rules guide. For a quick calculation of how much you could save, try our mortgage overpayment calculator.

Automate the habit so you don't rely on willpower

Most people who intend to overpay never do it consistently. Life gets in the way, the month flies by, and the "I'll do it next month" cycle starts again. Automation fixes this.

One option is to set up a standing order to your lender for a fixed monthly overpayment. This is simple and effective, although it doesn't flex with your spending.

Alternatively, apps like Sprive connect to your bank via Open Banking and help you set aside small amounts based on what you can actually afford. These amounts then go towards mortgage overpayments, turning an inconsistent intention into a working system. Sprive also offers cashback on in-app shopping that feeds directly into your mortgage pot. The app is free, and Sprive Limited (FRN 919863) is an appointed representative of Connect IFA Ltd (FRN 441505), which is authorised and regulated by the Financial Conduct Authority. In my experience, the autosaving feature is particularly useful in months when cash is tight.

If you'd like to try Sprive, you can get a sign-up bonus through our referral link. The current offer and full steps are on our Sprive referral code detail page. For a deeper look at what the app actually does day to day, our how the Sprive app works guide covers the mechanics.

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% (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. Rate data is sourced from Moneyfacts (early June 2026) and the Bank of England. 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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