Tracker mortgage holders ‘£9bn better off next year’
New research has suggested that homeowners with tracker mortgages could collectively be up to £9 billion better off by next Christmas.
The study by price comparison site Uswitch.com has said that over half a million tracker mortgage customers have taken advantage of the recent Bank of Englandbase rate cuts by overpaying on their mortgages by up to £260 per month.
The site claims that this could reduce the mortgage duration by as much as nine years, and save mortgage holders over £26,000 in interest overall.
However, the study also claims that nearly one in three homeowners have used the money they’ve saved as a result of the base rate cut to pay household bills.
A mortgage expert for Think Money commented: “Overpaying on mortgage bills is a very effective way of reducing the duration of a mortgage, and consequently the amount spent in interest.
“The recent base rate cuts have given some homeowners a good opportunity to make some headway on their mortgages. However, we do advise people on tracker mortgages to think very carefully about what to do with this ‘spare’ money. Depending on their circumstances, it might make more sense to put it towards their other debts, for example.”
—
Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage or remortgage, contact one of our expert mortgage advisers today.
Tracker mortgage holders ‘£9bn better off next year’
financerss.co.uk
Comments
Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!