UK makes £9bn in mortgage overpayments

UK makes £9bn in mortgage overpayments

British homeowners are collectively making £9 billion in mortgage overpayments every year, according to research produced by Santander Mortgages.

The study reveals that one in five mortgages holders overpay every month. Approximately 2.5 million people each pay £181 extra every month - meaning collectively they are paying an additional £455 million on top of their standard mortgage payments every month.

A further six per cent make an annual one-off payment and another nine per cent don’t usually overpay on their mortgage but have done so over the last 12 months. Almost two million people made a one-off overpayment in the past year, paying approximately £1,919 each.

Overall, 34 per cent of British mortgage holders make some sort of overpayment in the last
12 months.

Many have started to make overpayments in order to take advantage of lower interest rates. However, 23 per cent of UK homeowners don’t know if their providers allow them to make overpayments  and 14 per cent know they can but are not aware if there is a charge attached.

Phil Cliff, director of Santander Mortgages, said: “If you overpay on your mortgage you will pay less interest over the full term, so it’s a good thing to do if you can afford to.”ADNFCR-1222-ID-801664228-ADNFCR

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