19
May
More people 'overpaying on mortgages'
There has been an increase in the number of people who are
overpaying on their mortgages, new research shows.
According to Halifax and Lloyds TSB, this figure doubled last year
to 14 per cent from seven per cent in 2008.
In addition, the typical overpayment rose from £269 to
£336.
The firms suggested the findings reveal that a rising number of
consumers are realising the benefits of reducing their home loan
debts more speedily.
Stephen Noakes, commercial director of mortgages at the Lloyds
Banking Group, said: "The data shows that more and more borrowers
are seizing the opportunity to overpay whilst in a low base rate
environment."
Not only does raising the rate of repayments help homeowners take
years off their mortgages, but it also means they make considerable
savings over the long term.
Those who have opted to up the size of their repayments may have
welcomed the decision earlier this month by the Bank of England to
keep the base rate of interest at 0.5 per cent.
