More customers choosing to make mortgage overpayments, research
Research released by one of the UK's mortgage lenders has revealed
that an increasing number of customers are making overpayments on
The Co-operative Bank has experienced a 56 per cent year-on-year
increase in the amount of its customers paying back more than the
minimum required on their mortgage.
As a result of its findings, the financial institution is launching
a pilot scheme that will offer those customers who have already
significantly overpaid on their mortgages a chance to make
additional capital repayments of up to 50 per cent without
incurring any penalties.
Terry Jordan, head of mortgages at the Co-operative Bank,
commented: "Our data shows a real trend in the number of customers
electing to make overpayments and as a result we have decided to
offer those customers the chance to take advantage of the current
low rate environment."
In November, the Bank of England's Monetary Policy Committee
decided to hold the base rate of interest at 0.5 per cent for the
eighth consecutive month since it reduced it to its lowest historic
level in April 2009.