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Low rate benefits being squandered

Low rate benefits being squandered

Category: Mortgages

Updated: 31/03/2009
First Published: 31/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Despite record low levels of interest, more than half of consumers on tracker mortgages are choosing not to pay off more of their home loan each month.

Of those shunning the opportunity to pay off greater amounts of their outstanding mortgage, 38 per cent said they were using the additional funds to pay off other debts, according to unbiased.co.uk.

Thirty-one per cent are not being so savvy, however, choosing to spend the money on day-to-day expenses or treating themselves and their loved ones.

Just over one in ten are letting their current account balances build up, while 17 per cent are boosting their savings in deposit accounts.

Only one in five have held repayments at the level they were before the substantial cuts to rates.

Spokesperson, Richard Winder, said the current conditions presented an ideal opportunity to pay more off remaining tracker balances.

"Such action would enable millions of borrowers to take years off their mortgage repayment term, or enjoy a greater level of repayment comfort down the line, should the recession begin to bite harder," he added.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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