Mortgage overpayments on the rise as savvy homeowners look to stay one step ahead

12 May 2026

New data from Santander UK reveals that customers have overpaid their mortgages by more than £894 million in the first four months of 2026. The data marks an increase of over £200,000 in regular and one-off overpayments compared to the same period last year (January-April 2025), as many households continue to prioritise balancing long-term savings on interest against increasing everyday living costs.

Graham Sellar, Head of Santander for Intermediaries said:

“We know that many headlines paint a bleak picture for homeowners, with rising borrowing and living costs leading to a tightening of finances. That’s why seeing over £200,000 more in overpayments from customers in the first four months of 2026 is a really encouraging sign that, even with stretched budgets, homeowners are taking confident steps to reduce what they owe, save on interest in the long-run and build more security for the future.”

Santander mortgage customers can overpay up to 10% of the outstanding capital on their mortgage before they incur any early repayment charges (ERC). Overpayments can be made as a one-off or via a regular monthly payment starting from £10 per month, via the app, online or over the phone. The lender’s online overpayments calculator helps customers understand the impact that overpaying on their mortgage can have both in terms of the interest saved and how much more quickly they could repay their mortgage.

In June 2025, Santander also introduced the ability for brokers to make an ERC free overpayment for their clients prior to accepting a product transfer, without impacting their existing ERC-free overpayment allowance. More details can be found on the Santander for Intermediaries website.

Example: The impact of regular overpayments on a £250,000 capital and interest mortgage, over a 25-year term, with an average rate of 4.00% across the term: