More than £9 billion mortgage overpayments made every year

Gross mortgage lending shows strongest performance in five years

Around 19 per cent of mortgage holders overpay every month, according to figures from Santander Mortgages, while 6 per cent overpay once a year and a further 9 per cent overpay on an ad hoc basis.

The findings suggest that many have started overpaying  to take advantage of low interest rates. Thirteen per cent of those who overpay every month started doing so in the past six months, 24 per cent within the last year and 54 per cent within the last two years.

However, a quarter of mortgage holders have no idea if their mortgage provider allows overpayments at all.

Phil Cliff, Director of Santander Mortgages, said: "If you overpay on your mortgage you will pay less interest over the full term, so it’s a good thing to do if you can afford to. Nearly half of those people who have never overpaid on their mortgage still put money into savings each month, and given the average interest rate on these people’s savings accounts, in the long-term they may be better off using this money to make mortgage overpayments instead.”

Those who have made a one-off overpayment in the past year overpaid an average of £1,919.

Meanwhile, The Council of Mortgage Lenders estimates that total gross mortgage lending increased to £17.6 billion in October,  a rise of 9 per cent from £16.2 billion in September and 37 per cent higher than the total of £12.9 billion in October last year. It is the highest monthly estimate for gross lending since October 2008 (£18.6 billion).

CML chief economist Bob Pannell said: "Housing activity is set to strengthen further in the short-term, and to contribute materially to overall economic growth. Combined with the Bank of England’s recent optimism about the economy, this has led some commentators to speculate that an early rate rise may be on the cards. We do not currently share this view."

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "We are coming to expect inexorable rises in mortgage lending and October's figures don't disappoint. The lending numbers have bumped around the £16bn mark for the latter part of this year, but this is the first time they have broken through the £17bn barrier.

"But let’s not get carried away. While this is the highest monthly estimate for gross lending since October 2008 at £18.6bn, it is still 5 per cent off that figure, so the recovery is still very much underway. This increase in lending will continue to fuel the debate about an early interest rate rise. However, borrowers shouldn't panic as we believe that with inflation falling close to its 2 per cent target and the economy still in recovery mode, it is unlikely that the Bank of England will risk hiking interest rates too soon."

Discover more property articles at Homes and Property
New Articles
tvDownton Abbey Christmas special
Arts and Entertainment
Wolf (Nathan McMullen), Ian (Dan Starky), The Doctor (Peter Capaldi), Clara (Jenna Coleman), Santa Claus (Nick Frost) in the Doctor Who Christmas Special (BBC/Photographer: David Venni)
tvOur review of the Doctor Who Christmas Special
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
News
news
PROMOTED VIDEO
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Account Manager

£20000 - £35000 per annum: Recruitment Genius: This full service social media ...

Recruitment Genius: Data Analyst - Online Marketing

£24000 - £35000 per annum: Recruitment Genius: We are 'Changemakers in retail'...

Austen Lloyd: Senior Residential Conveyancer

Very Competitive: Austen Lloyd: Senior Conveyancer - South West We are see...

Austen Lloyd: Residential / Commercial Property Solicitor

Excellent Salary: Austen Lloyd: DORSET MARKET TOWN - SENIOR PROPERTY SOLICITOR...

Day In a Page

A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all