The BBC has reported that Lloyds Banking Group has been encouraging its borrowers to pay off their mortgages early.

Customers on variable rate deals can, for one year, overpay their mortgages by up to 20% of their loans.

Bank of England analysts have estimated that ultra-low interest rates have meant that UK households have saved about £20 billion in interest repayments in the past year.

About one in four borrowers have used the money to accelerate their repayments, allowing borrowers to pay off a loan more quickly by saving on the interest.