While the reduction in outgoings has come as a blessing for cash strapped borrowers, anyone able to maintain the same payments could potentially take years off their mortgage.
A homeowner on a lifetime tracker mortgage from First Direct paying around £1,000 per month in October would have seen their minimum payment drop to £690 now. If rates stayed at their historic low and the homeowner continued paying £1,000 per month, they could expect to save £16,000 and pay off their mortgage nine years early.
Louise Cuming, head of mortgages at moneysupermarket.com, said: "The fall in rates has certainly helped many borrowers - who can now either take the cut in expenditure or keep their payments at the same level and put some sorely needed extra equity into their homes.
"Mortgage overpayments can also be a real boon for anyone planning for retirement who doesn't have the safety net of a large pension pot in place. By reducing the term of the deal with overpayments now they will significantly ease their outgoings later in life."
