Savers who are taking part in dry January could knock almost £13,000 off their mortgage term in interest, Santander has found.

The bank has stated that putting away the average price of 12 pints, valued at £4.81 according to the Office for National Statistics, could see them save £12,983 over the course of a 25-year mortgage of £200,000 at 4.5% interest.

As a result, the saver would be mortgage-free two years and one month earlier than planned.

It comes as Santander found that its customers collectively overpaid £2.2bn in mortgage payments in 2024.

For those drinking more, using the money for 30 pints in a month, totalling £144, could see them save £28,373 over the course of a 25-year mortgage, reducing the term by four years and eight months.

The bank highlighted that making additional payments of £10 a month towards their mortgage could save more than £2,490 in interest, shaving four months off of their mortgage term.

Head of intermediary channel – mortgages at Santander, Graham Sellar, said: "Whatever the reason for doing dry January, there’s an undisputable benefit to your bank account. It’s tempting to spend that extra cash, but for those able to put even a small proportion of it aside, starting a habit of overpaying on your mortgage could reap huge benefits in the long run."

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