Low interest rates provide advantages for UK property owners with mortgages
Low interest rates are giving owners of UK property the opportunity to pay off their mortgages faster than expected, according to the Council of Mortgage Lenders (CML).
A representative of the organisation stated that people with mortgages could take advantage of the all time low interest rates to speed up the process of paying their mortgage. The current Bank of England base rate is 0.5%, however this is due to be reviewed on December 10th.
Bernard Clarke, a spokesperson for the CML, said: "If you're a borrower who's on a variable interest rate and 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 added that others could overpay by continuing to make payments at the same level as before the rates cut.
A report from Co-operative Bank Mortgages revealed a 56% year-on-year increase in people choosing to overpay their mortgages and clear their debt quicker.
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