Overpaying trackers could knock six years off the mortgage

Louise Bond, personal finance manager at uSwitch.com said: "Following yesterday's base rate cut, people on tracker mortgages could make savings of up to £134.46 per month or £1,613.52 a year.

“There are of course some that are suffering from the credit crunch and may need to use this cash for other things. However, those that don't need the extra money should really think about overpaying the mortgage if the deal they are on allows it. Overpaying the average tracker mortgage by the monthly saving of £134.46 will reduce the total amount of interest paid by £27,190 and the term will drop by almost six years*."

*This calculation is based on a £150,000 mortgage over 25 years at a tracker rate of 4.77%.