A staggering eight out of ten homeowners could be missing out on the opportunity to shave years off their mortgage by overpaying even small amounts, research by Barclays has revealed.
The lender is urging those homeowners who are not overpaying to start if they can afford it, while interest rates are still low.
The study found that only 10% of homeowners said they were currently overpaying on their mortgage, while just a further 6% said they planned to start overpaying this year.
It also revealed 24% said they aimed to pay off their mortgage early, with more than half of these (56%) saying they hoped to cut their mortgage term to 15 years or under.
The "average" overpayment is currently £200.82, which on an average mortgage of £150,000 over 25 years could see the term reduced by seven years and three months.
Even as little as £50 can have a huge impact - an extra £50 per month on the same typical mortgage would reduce the term by two years, four months.
Andy Gray, head of mortgages at Barclays, added: "We've seen just a modest increase in the amount borrowers are overpaying on their mortgage in the first two months of this year compared to the same period last year.
"We are still experiencing low interest rates and mortgage affordability is at its best levels for more than a decade so we would urge borrowers who can afford it, to start overpaying now, as putting an extra £100 to their mortgage each month will pay off their mortgage four years earlier and reduce the amount of interest that is paid.
"Most mortgages allow a generous 10% overpayment per year so rounding your repayments up to a few pounds more a month is a really good habit to get into if you can afford it and will reap its rewards when you are mortgage free years earlier than planned!"
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