Tracker borrowers ‘not taking advantage’ of low rates

Many homeowners that are on tracker mortgages are not taking advantage of the current low rates to aid their debt management, it has been found.

A survey by Unbiased.co.uk has discovered that 56 per cent of this group are not overpaying on their home loan, despite the base rate being at an all-time low.

The site noted that only one in five of those polled have maintained their repayments at the levels seen before the Bank of England began making interest rate cuts, which can help them to clear debt.

Spokesperson Richard Winder urged tracker mortgage holders to capitalise the “ideal opportunity” to cut the duration of their home loans.

He explained: “Such action would enable millions of borrowers to take years off their mortgage repayment term, or enjoy a greater level of repayment comfort down the line.”

Meanwhile, the Finance and Leasing Association has reported that less people are taking out a second mortgage, with the level of new business in this sector falling by 84 per cent over a year.

By Jamie Price