Pay off your mortgage FASTER: How to clear debts early

Around 2.5 million home buyers fix are on higher than necessary rates, which means it takes longer to become mortgage free, according to research by Tesco Bank.

And now is the time to get the best deals, with the Bank of England threatening to raise interest rates, making mortgages more expensive.

Future interest rate rises would make the an average mortgage more than £750 more expensive, analysis by lender Freedom Finance found.

For now, lenders are still competing to offer cheap rates, keeping loan repayment down for borrowers.

Someone with a £200,000 mortgage for 25 years, who moves to a deal that is just 0.5 per cent lower could save roughly £653 a year, according to recent analysis by online broker Habito.

The extra money can be used to overpay the mortgage to become debt free faster.

Shaun Church, director at Mortgage Broker Private Finance, said: “Although the Bank of England hasn’t raised rates this time around, the message is clear that consumers should be aware this might happen sooner than expected.

"When rates do eventually rise, it will be first time over two million people have experienced this as a mortgage holder, and more rises are likely follow.

“However, while today’s rock bottom mortgage rates can’t last forever, further base rate rises are likely to be gradual and mortgage rates won’t necessarily rise at the same rate."