People who continue to make the old payment on their tracker mortgage after last week's base rate cut could shorten the life of the loan dramatically, according to one expert.
Louise Bond, personal finance manager at uSwitch.com, explained that the average tracker mortgage customer will see a saving of £134.46 a month.
However, if the individual in question overpays on their mortgage by this amount then they will save around £27,000 in interest and cut the term by almost six years.
She said: "Those that don't need the extra money should really think about overpaying the mortgage if the deal they are on allows it."
The calculation is based on a £150,000 mortgage over 25 years with an interest rate of 4.77 per cent, Ms Bond added.
Last week, Darren Cook, mortgage expert at Moneyfacts.co.uk, praised Lloyds TSB for being the first lender to pass on the base rate cut to its standard variable rate customers.
Overpay on tracker mortgages, expert urges
Mortgage Quote Line
0845 108 0505
Overpay on tracker mortgages, expert urges
Mon, 10 Nov 2008
Recommended links
Mortgage comparison portalMortgage quote form
Mortgage repayment calculator
Maximum borrowing calculator
How much can I borrow?
Search for a mortgage deal
Conveyancing guide
Mortgage protection insurance
Mortgage surveys
Guide to switching your mortgage lender
Mortgage debt help
Mortgage troubles - what to do
Mortgage debt and repossession
Managing mortgage arrears
Mortgage arrangement fees
Mortgage indemnity insurance
Stamp duty
Stamp duty calculator
Money saving tips for homeowners
Tracker mortgage guide
Variable rate mortgage guide
Browse variable rate mortgage deals
Compare variable rate mortgage offers
Offset mortgage guide
Search for a mortgage broker
Compare mortgage deals and rates
Compare mortgage lenders
Tracker mortgage deal kicks off
New tracker deal for first-time buyers
Offset tracker mortgage launched
Fixed mortgage rates vs tracker mortgages
NandP unveils new tracker mortgage deal
Bank offers fixed and tracker mortgages at same starting rate
The Coventry launches buy-to-let tracker mortgages
Abbey pulls tracker mortgages
Tracker mortgages to get more expensive, expert predicts
Trackers and discount mortgages best value, expert advises
Best value mortgages on the market are trackers and discounts
Trackers superseding fixed-rate mortgages
Brits unsure about tracker mortgages, AandL finds
Financial services provider launches new tracker mortgage
Leeds tracker mortgage deal extended
Skipton launches 3-year tracker mortgage
John Charcol launches new lifetime tracker mortgage
New tracker option from Mortgage 2000
Tracker mortgages still a good option, expert claims
New capped tracker mortgages unveiled
Tracker mortgages give good value despite forecast rate hike
Tracker mortgages still good value, say experts
John Charcol launches new offset tracker mortgage
Mortgage broker launches offset tracker mortgage
New tracker rate mortgages from GMAC-RFC
Consumers choosing tracker mortgages
Trackers climb as fixed-rate mortgages fall
John Charcol launches tracker mortgages
Tracker mortgages to become more popular, expert claims
Woolwich cuts rate on tracker mortgage
Trackers remain best value mortgages
Charcol: Consider tracker when trying to find a remortgage
Tracker-based mortgages rising
Abbey launches capped and tracker mortgages
John Charcol launches lifetime tracker mortgage
Halifax cut tracker mortgages
Tracker mortgage kicks off with competition
Halifax raises tracker mortgage rates
Tracker mortgages a better deal, expert claims
Tracker mortgages to "come into their own"
New tracker mortgages claim to be market-leading
Fixed and tracker mortgages combined
Semi-exclusive tracker mortgage offer announced
Tracker mortgages get more expensive
Tracker mortgages looking like a good option for 2006
Scarborough offers switch-to-fix on tracker mortgages
Mortgage lenders up tracker rates
Tracker mortgages more expensive
First-time buyer tracker mortgage from Coventry
Tracker mortgages falling in price, reveals study
First time buyers look to tracker deals
Leeds states Maradona effect may help tracker mortgages
New tracker mortgage from first direct
Tracker buy-to-let mortgage available
Consumers warned about tracker rate mortgages
Tracker mortgages offer rate cut benefits, expert states
Financial services provider cuts tracker mortgage rates
Abbey raises tracker mortgage rates
Tracker mortgage increase from Nationwide
New tracker mortgages from the Bank of Scotland
NatWest launches buy-to-let tracker
Woolwich revives lifetime tracker mortgage
Borrowers urged to consider tracker mortgages
Alliance and Leicester launches new tracker mortgage range
Expert recommends tracker mortgages
Bradford and Bingley launches new cashback tracker mortgage
New tracker for people looking to find a mortgage
Tracker mortgages could offer value, expert claims
Abbey releases two-year tracker mortgage
Tracker and discount mortgages becoming more popular
Tracker remortgage could be popular
UCB extends tracker mortgage range
Britannia launches new tracker mortgages
Homeowners choose fixed-rate mortgage over tracker
Tracker mortgages uncertain but can offer savings, expert says
Nationwide launches new tracker mortgage
Tracker mortgages more expensive, figures show
Charcol releases new stepped tracker mortgage
UCB Home Loans launch new three-year flexible tracker mortgage
Mortgage lenders increase interest rates on trackers
Base Rate Tracker Mortgages Explained
| mortgages news |
|---|
| Mortgage holders warned not to overpay - Fri, 19 Mar 2010 |
| Gross mortgage lending increased in February, says CML - Fri, 19 Mar 2010 |
| Bank of England say mortgage costs rising for those with small deposits - Fri, 19 Mar 2010 |
| More News |
Mortgage Rates by Lender 
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Equity Release
Switching Mortgages
Home Reversion Plans
Commercial Mortgages Arrears & CCJs?
Remortgages- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage