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If your finances allow for it, a one-time lump sum overpayment can significantly impact the interest you pay over the life of your loan. For instance, overpaying a £5,000 lump sum on a £150,000 mortgage at a 5% interest rate could save almost £12,000 in interest and reduce the mortgage term by 18 months. This shortens the period you are making payments and can provide you with more financial freedom sooner.