Velocity Banking Calculator

How the Calculator Works

This calculator shows you the effect of making regular overpayments on your mortgage. It compares two scenarios:

1. Standard repayment — Making only your normal monthly payment over the full mortgage term
2. With overpayments — Making additional monthly payments and optional annual lump sums on top of your normal payment

The difference shows you how much interest you could save and how many years earlier you could be mortgage-free. This is the core principle behind velocity banking: redirecting surplus income to reduce your mortgage principal faster.

UK Overpayment Rules

Most UK mortgage lenders allow overpayments of up to 10% of the outstanding balance per year without early repayment charges. Check your mortgage terms before making overpayments. Key points:

• Fixed rate mortgages — Usually limited to 10% overpayment per year. Exceeding this triggers an early repayment charge (ERC), typically 1-5% of the excess.
• Variable/tracker mortgages — Often allow unlimited overpayments without penalty.
• Offset mortgages — Your savings offset the mortgage balance, effectively acting as an overpayment without actually paying down the loan. See our offset mortgage guide.
• Flexible mortgages — Allow overpayments and sometimes withdrawals of previous overpayments.

Related Resources

• What Is Velocity Banking?
• How Velocity Banking Works
• Complete UK Guide to Velocity Banking
• Mortgage Overpayment Calculator
• HELOC vs Offset Mortgage UK
• Offset Mortgage Guide