Mortgage overpayments increase - Mortgages - News - Moneyfacts


Mortgage overpayments increase

Mortgage overpayments increase

Category: Mortgages

Updated: 26/02/2009
First Published: 26/02/2009

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 It is now over 6 months old so the content may be out of date.

Research has found that the number of people who are making overpayments on their mortgages has doubled in the last year alone.

Eighty per cent of the people who said that they overpaid cited the current low return on savings as their main motivation for doing so, while 37 per cent said that the fall in the base rate was a contributing factor, according to the Co-operative Bank.

Terry Jordan, head of mortgages, commented: "Our internal data has shown a 50 per cent increase in our mortgage customers making overpayments. It would appear that with interest rates now at an historic low, customers are recognising more than ever the benefits of making overpayments"

Almost one in ten people (seven per cent) questioned said that they had made overpayments in the hope of securing an improved mortgage deal, by increasing equity in their homes.

Of those who said they did not overpay their mortgages, 29 per cent said they preferred to put money into savings, with a further 24 per cent preferring to spend their hard earned on holidays and clothing.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!