Homes6 min read·Updated 31 May 2026
Overpaying your mortgage vs. topping up savings
The right answer depends on your mortgage rate, savings return, tax position and how much flexibility your household needs.
Compare after-tax returns
Set the guaranteed interest saved by an overpayment against the net return available from a suitable savings account or investment.
Liquidity has a value
Money paid into a home may be difficult to access again. Keep a cash buffer before making additional principal payments.
Check the mortgage terms
Confirm annual overpayment allowances, fees and any fixed-rate restrictions before sending extra money.