Flexible mortgages could reduce the time it takes to repay a mortgage significantly, according to a price comparison website.
Moneysupermarket says mortgage holders can shave up to five years off a 25-year mortgage term.
Regular overpayments, which are allowed penalty-free on flexible mortgages, will not only reduce the mortgage term, but will also result in savings as interest repayments are reduced, the website states.
"If homeowners are in a position to make flexible payments, then they should plan ahead," says Louise Cuming, head of mortgages at Moneysupermarket.
She adds that an interest rate cut is "widely expected" within the next few months.
"Anyone on a variable flexible mortgage is likely to reap the rewards with a rate cut and could look to use any savings made towards overpaying their monthly repayments," Ms Cuming concludes.
Should the interest rate be cut from its current 4.5 per cent, those with flexible mortgages could make overpayments by continuing to repay the same amount they now pay every month.
The Bank of England's monetary policy committee, which sets interest rates, is due to vote about the base rate tomorrow.
Flexible mortgages could help savings
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Flexible mortgages could help savings
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