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The amount of home owners overpaying their mortgages has shot up by 50% in the last 12 months according to new figures released from The Co-operative Bank Mortgages. 

A low return on savings has has emrged as a major factor for borrowers overpaying into their mortgages.

Nearly 40% of home owners are making overpayments on their mortgages because of the base rate falls.

24% of borrowers are choosing to defy the credit crunch and spend excess money on holidays and clothing.

Terry Jordan, head of mortgages at The Co-operative Bank, says: “Our internal data has shown a 50% increase in our mortgage customers making overpayments.

“It would appear that with interest rates now at a historic low, customers are recognising more than ever the benefits of making overpayments.

“Providing their mortgage allows the flexibility to overpay, at the current time it can make real financial sense for customers to make even small monthly overpayments, as these can really add up to a large difference over the lifetime of the mortgage.”