4
Dec
Borrowers 'could take advantage of low interest rates'
People who can afford to overpay their mortgages while interest
rates are at an all-time low should consider the advantages of
doing so, an industry expert has said.
Bernard Clarke, a spokesperson for the Council of Mortgage Lenders
(CML), commented that borrowers on variable rate deals could
benefit: "If you've seen your borrowing costs reduce as a result of
reductions in base rates, you may decide to overpay your mortgage
in order to clear the commitment earlier than you
anticipated."
He explained that mortgage payers can do this by continuing to make
instalments at the higher levels experienced before the rate cuts
came into force.
Research released by the Co-operative Bank Mortgages on December
1st revealed that there had been a 56 per cent increase in the
number of its customers making overpayments on their loans.
The financial institution speculated that the low base rate of
interest set by the Bank of England was encouraging consumers to
shave more off their debts while credit is cheap.
