one in four (23 per cent) mortgage holders have told us that they are actively making overpayments. These overpayments are substantial too, averaging out at £221 per month. That’s on top of their regular repayments and works out to £2,647 per year. Those who are overpaying predict that this will reduce their mortgage term by four years on average. Speaking about this, Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: “For mortgage holders fortunate enough to be able to make overpayments, it can be a great way to reduce the length of your loan term, or minimise the impact of possible rate shocks coming after a lower fixed deal.” As he explains below, making small overpayments towards a mortgage can pay in the long-term, but, for many mortgage holders, the decision to overpay needs to be weighed against a number of other factors
