Mortgages ‘can be paid off six years earlier’

The recent cut in interest rates could help borrowers pay off their mortgage up to six years sooner, it has been claimed.

In news that may interest those wanting to become debt free, director of mortgage firm John Charcol Drew Wotherspoon stated many borrowers can use the current economic climate to their advantage.

“As interest rates fall, it provides the perfect opportunity for borrowers with trackers to pay their mortgage back quicker, without noticing any difference in their pocket every month,” he explained.

He advised borrowers to keep their mortgage payments at the level they were before the Bank of England’s decision last week in order to take years off the time needed to repay their lender.

Alliance & Leicester recently announced it is to relaunch its two-year base rate tracker mortgage after the deal was withdrawn following the rates cut.

Interest on the new finance option will be set at 4.89 per cent.

By Tom Musk