Overpaying your mortgage could save you a fortune


According to research from Santander, one in five mortgage holders overpay their mortgage each month, collectively paying more than £9bn a year in overpayments.

These people have paid their mortgage lenders more than they owe them, either on a regular basis or by making occasional lump sum overpayments. Meanwhile, mortgages haven't been as affordable as they are now since the second quarter of 1999, according to research from Halifax.

Mortgage repayments currently account for just over a quarter (27%) of a new borrower's monthly income, well down on the long-term average of 36%.

But what sort of borrowers are choosing to overpay, and is it a good idea?