Overpayment on mortgages can save thousands

People who make one-off payments on their mortgages could save money in the long run.

People who overpay on their mortgage repayments can save nearly £10,000 in the long run, according to a mortgage expert.

Homeowners who receive summers bonuses are being urged to use them to make an overpayment on their mortgage by website Charcolonline.

The website said if a British mortgage holder was to make a one-off overpayment of £5,000 on a £150,000 mortgage they could save up to £9,000.

Charcolonline spokesperson Elliot Nathan said: "Often people think they have to overpay a huge amount to make any kind of decent saving but actually even a relatively small £5,000 overpayment can make a real difference to the average mortgage.

"By making savings now, homeowners will leave themselves with more money in the future to be able to treat themselves."

Even borrowers who do not receive a summer bonus are encouraged to make a one-off overpayment to relieve the loan burden later on.