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It seems more and more people are choosing to overpay on their mortgage rather than take out more debt – if you have an offset loan, you should join the trend and begin to cut down your debt.

New lending data from the Bank of England have found that for the very first time people paid back more of their mortgages than they took out as debt – the Bank’s July lending data found that net repayments outstripped the total amount lent to individuals.

Overall, lending to individuals fell to a net amount of -£600m in July, down from plus £200m in June. Brits paid back £600m instead of choosing to borrow more debt. Of course, some of this is down to the fact that people cannot get hold of a new mortgage right now, but the changing British attitude is helping more people to amass more equity.

If you are an offset borrower, you are definitely in the best position to overpay on your mortgage. Some people might be limited to how much they are allowed to go over by within the confines of their regular loan, but with a flexible offset, the sky is the limit.

Also, with offset the more you put against your debt, the lower your mortgage rate or the shorter your mortgage term. So as you overpay, you save.

While rates are low, and if you have money to spare, it’s crucial to overpay. Talk to your mortgage adviser – although they may not be able to help you get hold of a new mortgage, they will be able to help you plan your overpayment scheme. They can help you go through all your finances, finding where you can afford to spend less, and where you should be spending more.

Overpaying is the best thing a mortgage borrower can do – so join the other canny Brits who are paying now to save big later.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.