Over half of tracker mortgage borrowers 'not overpaying'

Date:Wednesday 1st April 2009
Author: Max Freedman

A significant number of tracker mortgage borrowers are not taking advantage of current low interest rates by overpaying on their home loans.

This is according to figures produced by Unbiased.co.uk, which found that 56 per cent of such people have not overpaid their mortgages.

However, 22 per cent of those questioned reported that they have held their monthly repayment amounts at the same level in order to reduce the size of their loan.

In addition, 38 per cent of the people who are not overpaying said they are using the extra money they have to service other debts.

"Tracker and standard variable-rate mortgage borrowers have watched interest rates plunge to record lows in recent months, presenting an ideal opportunity to pay down more quickly the amount of the outstanding mortgage," stated Unbiased.co.uk spokesperson Richard Winder.

Recently, Melanie Bien of Savills Private Finance claimed that the UK is near the bottom of the mortgage market, meaning the rates charged on home loans are set to go up soon.