In a survey of the UK’s leading mortgage lenders conducted by The Independent, it is reported that home owners are more likely to be making bigger payments on mortgages than increasing spending elsewhere.
The report says that more customers in the UK are making inroads into their mortgage debt, with many households keeping repayments at the same level as they were before the interest rate cuts, allowing them to make a substantial overpayment without affecting their monthly budget.
The news is confirmed by most of the UK’s leading lenders, with the Lloyds banking group saying that customers making overpayments has doubled on last year, with a surprising monthly average of £350.
The Lloyds banking group includes the Halifax, Cheltenham & Gloucester and Birmingham Midshires Building Societies as well as Lloyds TSB and Bank of Scotland.
Barclays said that the number of home owners making overpayments on mortgages with them had risen three fold on last year, but the average overpayment was smaller.
The Bank of England released data last week that suggested that the UK public are also making an exerted effort to clear unsecured loans, confirming that a record amount had been paid off by households in October.
More older generation home owners who have paid off their mortgages but have a low income are looking to capitalise on the equity in their homes, with interest in the many equity release schemes growing in recent months.
If you are thinking of releasing the equity in your own home, you can first check with an equity release calculator to see the benefits and pitfalls.
2 comments so far
1 JassiMostru // Jun 4, 2010 at 10:28 pm
Hi
Very nice and intrestingss story.
2 Home Loan // Jul 15, 2010 at 4:49 pm
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