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.
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