1 Dec

More customers choosing to make mortgage overpayments, research shows

More customers choosing to make mortgage overpayments, research shows

Research released by one of the UK's mortgage lenders has revealed that an increasing number of customers are making overpayments on their mortgages.

The Co-operative Bank has experienced a 56 per cent year-on-year increase in the amount of its customers paying back more than the minimum required on their mortgage.

As a result of its findings, the financial institution is launching a pilot scheme that will offer those customers who have already significantly overpaid on their mortgages a chance to make additional capital repayments of up to 50 per cent without incurring any penalties.

Terry Jordan, head of mortgages at the Co-operative Bank, commented: "Our data shows a real trend in the number of customers electing to make overpayments and as a result we have decided to offer those customers the chance to take advantage of the current low rate environment."

In November, the Bank of England's Monetary Policy Committee decided to hold the base rate of interest at 0.5 per cent for the eighth consecutive month since it reduced it to its lowest historic level in April 2009.

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