Nationwide Building Society has increased the amount borrowers can overpay on their mortgage.

The mutual is introducing products that allow borrowers to overpay up to 10% of their mortgage every year without incurring an early repayment charge.

Previously, customers were able to overpay a maximum of £500 a month, irrespective of their loan size.

It means borrowers may be able to repay their mortgage earlier than previously planned.

Mortgages reserved from May 29 will carry the 10% a year overpayment feature. Existing products are unaffected.

Tracie Pearce, head of group mortgages at Nationwide, said: “The move to a 10% a year overpayment allowance means borrowers may be able to repay their mortgage more quickly than they had previously anticipated.

“Our competitive mortgage rates mean customers are enjoying some of the lowest ever monthly mortgage payments, giving many of them the opportunity to use any extra cash to overpay on their home loan – and ultimately become mortgage-free earlier than they thought.”