A rising number of UK consumers are making overpayments on their mortgages, it has been claimed.
According to figures produced by the Co-operative Bank Mortgages, an increase of 56 per cent has been recorded in such activity among its customers.
It suggested that people are taking advantage of the current low interest rates to reduce the size of their debts.
Homeowners with variable-rate products were identified as those most liable to make overpayments, with such people being three times more likely to do so than those on fixed-rate mortgages.
“With interest rates continuing to remain at the current low level, we have been following developments in this area closely,” stated Terry Jordan, head of mortgages at the Co-operative Bank.
Currently, the base rate of interest in the UK stands at 0.5 per cent, although this is expected to rise once the economy begins to recover from the economic downturn precipitated by the credit crunch.
