Co-operative: Large rise in mortgage overpayments

Date:Tuesday 1st December 2009
Author: Max Freedman

Mortgage holders have been choosing to make overpayment on their loans, according to the Co-operative.

Research by the financial services provider also found that those on a variable-rate mortgage were most likely to be the ones making extra payments on their loan.

Overall, the number who are choosing to pay back more has increased by 56 per cent between 2008 and 2009.

The Co-operative is planning a pilot scheme which will allow customers who have made overpayments this year the chance to make capital payments of up to 50 per cent of their total mortgage in 2010.

Terry Jordan, head of mortgages at bank, commented that there has been a trend in the number mortgage holders who have chosen to make overpayments and as a result the bank have decided to let the customers who have paid more back take advantage of the current low rates bank rates.

During the summer, the Co-operative saw a 75 per cent increase in mortgage business following the launch of a three-year tracker product.