Increasing numbers of homeowners were making overpayments on their mortgage in the first four months of 2026, data from Santander has revealed.
The lender said its customers had overpaid their mortgages by a collective £894 million during this period – January to April 2026 – as they attempted to prioritise balancing long-term savings on interest against increasing everyday living costs.
It had seen an increase of over £200,000 in regular and one-off payments compared to the same period last year.
Most lenders allow mortgage borrowers to overpay by up to 10% without facing penalty charges and Santander is no exception.
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 said customers can make overpayments as a one-off or via a regular monthly payment starting from £10 per month. They can use the app, go online or make the payment over the phone.
It also has an online overpayments calculator to help customers understand the impact overpaying on their mortgage can have both in terms of the interest saved and how much more quickly they could repay their mortgage.
What are the financial benefits of overpayments?
Santander said by making the minimum £10 overpayment per month on a £250,000 capital and interest mortgage with a typical rate of 4% a customer could reduce the term by three months and potentially save £2,117 in interest payments.
For those able to pay an additional £50 per month, this would shave one year and six months off the term and generate a potential saving of £9,975.
For those paying £100 extra a month, this saving could rise to £18,619 and reduce the time taken to repay by two years and 10 months.