Borrowers preparing to overpay

New research from Abbey Mortgages has found 12 per cent of mortgage holders are planning to overpay in the next six months.

A total of three per cent are intending to take advantage of a payment holiday and one per cent expect to underpay, suggesting more consumers are preparing for a financial storm before it hits.

The statistics also suggest that the increased cost of living – including household bill rises – are not affecting people’s wish to become debt free.

In addition, one mortgagee in ten is planning to change their lender in the next six months, which may indicate people are keen to save money and stay clear of unnecessary arrears and other debt management problems.

Phil Cliff, director of Abbey Mortgages, said people seem to be utilising the flexibility of mortgage deals.

“It’s great to see that people are quite rightly prioritising their mortgage payments ahead of other financial commitments,” he added.

Also in the news today, Shelter has called on mortgage lenders to consider the effects on tenants when buy-to-let properties are repossessed.

By Morwenna Kearns