The warning comes at a time where the average UK house price has dipped £10,000 over summer including £5k in August alone

 UK households could save more than £4,000 on their mortgage with just £21 a month. Jinesh Vohra, CEO of mortgage overpayment app Sprive, is encouraging homeowners, especially those on variable rates and those able to secure new lower fixed-rate deals.

UK households can use the savings to overpay their property loan, and potentially save thousands in interest. The warning comes at a time where the average UK house price has dipped £10,000 over summer including £5k in August alone.

Someone with a £150,000 mortgage at 4.25% over 25 years currently pays around £812 a month, he said. The 0.25% cut brings this down to £791 — a saving of £21 a month, or £252 a year. If they keep paying £812 and put that £21 towards overpayments, they could save £4,280 in interest and clear their mortgage a year and a month sooner.

Vohra added: Overpaying is one of the most powerful ways to become mortgage-free faster.

Even small, regular overpayments can knock years off your term and save thousands — all without stretching your budget, he said.

Steve Beercock, executive director at Beercocks in Yorkshire and the Humber, said: Locally in Yorkshire and the Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors.

Amy Reynolds, head of sales at Antony Roberts in London, said: What’s surprised me most is the first-time buyer flat market in our area. It slowed after the stamp duty holiday ended but has now rebounded strongly.

That said, there are still some well-priced homes sitting unsold, often because buyers are holding back. Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer holiday period and heading into the busier autumn, Reynolds said.

Reynolds added: Those who hold back may see the property they like snapped up by someone else, so it’s always worth an inquiry to gauge the seller’s position.