More Brits making mortgage overpayments

Wednesday, December 2nd 2009

The number of homeowners making overpayments on their mortgage has soared by 56 per cent in the last year, according to new figures.

Statistics from Co-operative Bank Mortgages show that Britons on variable-rate products are the most likely to do so compared with those on fixed-rate home loans.

This may be due to the fact that the Bank of England's base rate of interest is currently at a historic low, the organisation said.

"Our data shows a real trend in the number of customers electing to make overpayments," commented Terry Jordan, head of mortgages at Co-operative Bank.

The news comes shortly after recent figures from the Bank of England showed that British consumers are continuing to repay more than they owe when it comes to credit.

Borrowing on credit cards rose by £100 million in October, while other lending - including personal loans - saw a fall of £700 million.