Homeowners 'missing out on early mortgage finish'

Thursday, 17 March 2011 01:54

Eight in ten homeowners are missing out on an early mortgage finish that could be achieved through overpaying by small amounts, research has found.

Barclays conducted a survey with more than 1,000 borrowers and found that just ten per cent of homeowners are currently overpaying on their mortgage, while just six per cent stated they planned to start doing so this year.

Despite this, the firm also revealed that 24 per cent said they aim to pay off their mortgage early and 56 per cent hoped to reduce the term of their loan to 15 years or less.

The findings indicated the average overpayment is currently £200.82, which on a mortgage of £150,000 over 25 years could see the term reduced by seven years and three months.

Andy Gray, head of mortgages at Barclays, suggested: "Rounding your repayments up to a few pounds more a month is a really good habit to get into if you can afford it."

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