Overpaying on mortgage repayments can allow homeowners to save twice as much as they pay, an expert claims.

Borrowers can chip away at their debt without incurring any early redemption charges, according to charcolonline.co.uk.

It claims that by overpaying £10,000, homeowners would be able to save £20,000 in mortgage repayments and see their loan paid off three years faster.

But many mortgage deals tie people into payment plans which apply step fees to those attempting to pay off large chunks of debt in one go.

Ray Boulger of charcolonline.co.uk, said: "Most borrowers will have the ability to overpay their mortgage without incurring any early redemption charges, and some may not be aware of this.

"The most common amount which can be overpaid, without incurring early redemption charges, is ten per cent per annum, but some allow five per cent or unlimited overpayments, all of which allow a large chunk of the mortgage to be overpaid."

He stressed that although every borrower has different terms, even small overpayments can save money.

Charcolonline.co.uk calculates that people who overpay by £2,500 on a £100,000 mortgage can save themselves £4,684 and pay off their loan a year earlier.

And overpaying does not necessarily mean the borrower no longer has access to the money they take from their loan.

Mr Boulger added that some loans allow the homeowner to re-borrow any overpayments at a later date.

"Such a facility will allow large bonuses to be parked in the mortgage, thus saving interest, until needed for any large expenditure during the following year," he concluded.