The time is now to overpay on the monthly mortgage payment.  That is the message many banking and mortgage specialists are sending while interest rates remain at this low rate.  The historic low rate of 0.5% is close to becoming a distant memory due to the rate of inflation putting pressure on the Bank of England.

A recent report has released information about those homeowners taking advantage of the low rate, and overpaying on their monthly mortgage.  An estimated 80% of borrowers are missing out on the opportunity to get ahead and overpay on their monthly mortgage.  This research has been discovered by highly respected Barclays.

The advantage to overpaying on one’s mortgage is the years which can be shaven from paying off the entire balance.  Even in small quantities, overpaying can make a significant difference.

What could be considered even more alarming is the report found only 10% of homeowners are currently taking advantage of their position with the low interest rate and overpaying.  A total of 1,000 borrowers were surveyed.  An estimated 6% claim they will start overpaying this year.

The head of mortgages at Barclays, Andy Gray, commented on the misconception most borrowers have about not being able to afford a slightly higher payment each month, saying: "Even with the reality that interest rates will start to rise at some point, many borrowers are likely to be able to afford a little more than they think.

"A home owner on a typical £150,000 mortgage tracking at 2.49 above base rate would see their monthly mortgage payments increase by around £20 for each 0.25 increase in base rate. Borrowers will therefore benefit from overpaying by as little as £50.

"I'd urge all home owners to review their current mortgage arrangements."