First-time buyers overpaying mortgages to speed up repayments

October 20, 2025 by Brendan O'Neill

Home owners

The latest research has found that a number of first-time buyers who bought during the last five years are overpaying their mortgages, with the aim of clearing them before they hit 40.

This finding is taken from a report published by TSB, which surveyed over 1,000 people who bought for the first time during that period. The survey indicates that more than one out of every six of them is planning to repay their mortgage by the time they are 40. The strategy for doing that which has been adopted by around two-thirds is to pay back more per month than they have to.

Close to three out of every five of the first-time buyers who took part in this survey want to cut the duration of their repayment term. With that in mind, 43% said that they were making higher than necessary payments every month.

The survey also asked how much buyers are overpaying, with 20% saying anything from £200 to £299 per month. Another 17% stated that they were overpaying monthly by up to £399. Meanwhile, 9% said that they were paying back lump sums of as much as £2,499.

Respondents said that they were managing this through a range of measures, from tight budgeting to skipping holidays. The TSB mortgages director Craig Calder told Mortgage Introducer:

“Overpaying can be a great way of shaving years off your mortgage, and we’d advise building this into your wider financial plan that ensures money confidence across savings, budgeting and a pension.”

Borrowers may also want to consult someone with CeMAP training.