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
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Overpay on tracker mortgages, expert urges
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