One-fifth of Britons are overpaying every month on their mortgage repayments, according to Santander.
This equates to 2.5 million people, who each overpay an average of £181 a month – meaning collectively they are paying £455 million a month on top of their standard mortgage repayments.
In addition, nearly two million people have made a one-off overpayment in the last year, overpaying an average of £1,919. In total one-third (34 per cent) of Brits overpay in some capacity, whether regularly or a one-off payment.
Despite these statistics, it transpires that one in four has no idea whether their mortgage provider allows overpayments. Eight per cent are certain that they will be charged for overpaying.
Phil Cliff, director of Santander Mortgages, commented: “If you overpay on your mortgage you will pay less interest over the full term, so it’s a good thing to do if you can afford to.”
The survey revealed that many have made the decision to overpay to make the most of the low interest rates, with over half (54 per cent) doing so within the last two years.
