Data collected by Santander show the benefits of a monthly £10 overpayment on a mortgage.
The data outlines if a customer was to take a £200,000 mortgage over a 25-year term, they could save £1,146 in interest and become mortgage free four months earlier.
Furthermore, by making a £100 overpayment each month on a £200,000 mortgage, a customer could save £9,948 in interest and reduce their mortgage term by three years in the process, according to Santander.
Santander adds that borrowers with larger mortgages have more to gain, with a £500,000 mortgage with the same £100 overpayment, savings of over £10,000 in interest are achievable as well as becoming mortgage free one year and five months earlier.
For customers able to overpay by 10 per cent, they could save £46,608 in interest on a typical £200,000 mortgage, while a larger £500,000 mortgage would see a saving of £116,522. In both instances the mortgage would be repaid 14 years earlier.
The bank reports 97 per cent of people currently overpaying on their mortgage opt to use the extra payment to reduce the term of their mortgage, with customers able to overpay any amount from £10.
Santander head of mortgages Miguel Sard says: “Many customers don’t realise that they’re able to make such small overpayments on their mortgage or the huge savings that those overpayments could bring with interest rates as they currently are.
“Our data shows that even an extra £10 a month makes a difference over the life of a customer’s mortgage.”