19 May

More people 'overpaying on mortgages'

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.
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