Homeowners have failed to take advantage of low interest rates to accelerate their mortgage repayments, according to new research. The research was carried out by finance website unbiased.co.uk, and reveals that 63 per cent of borrowers have not overpaid on their home loan repayments, compared with 53 per cent of borrowers in May 2009. Just 11 per cent said they had been making occasional overpayments above their ordinary mortgage repayments, while 13 per cent said they had deliberately kept their mortgage repayments at the same level.
Of those not upping their mortgages repayments, 28 per cent are using the money to repay other debts, such as personal loans, credit cards or overdrafts, while 24 per cent require the cash for living costs. In spite of the woeful interest rates being offered on savings accounts and ISAs at present, 13 per cent revealed they were using the money to build up savings, with 4 per cent said they used the money to go on holiday .
Chief executive of unbiased.co.uk, Karen Barrett, voiced her concern at the failure of borrowers to step up their repayments, suggesting it would help to secure future financial stability.
Homeowners Failing to Take Advantage of Low Bank Rates
Financial Services > e-banking > Banking news
Homeowners Failing to Take Advantage of Low Bank Rates
Wed, 28 Apr 2010
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