Lloyds TSB has revealed it received over 27,000 requests from customers to overpay their mortgage since November's sharp interest rate cut.
Lloyds says overpayments have become an increasing trend; in November the lender received 7,000 requests while in December over 12,500 requests were made.
In the first two weeks of January, 7,900 requests were made and the number is expected to grow further over the coming months as customers get used to lower monthly payments.
"Homeowners with a tracker mortgage are hundreds of pounds a month better off," reveals Stephen Noakes, marketing director at Lloyds owned Cheltenham & Gloucester (C&G).
"For those who can spare the extra money, making overpayments is a smart move. Not only can it trim years off your mortgage term, but with house prices falling, overpayments will help to protect the equity in your home."
He concludes: "A year ago, a number of homeowners were extending their borrowing with further advances. We're now seeing a definite switch to paying down your mortgage debt."IFAonline
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