Clearing debt ‘a priority’ for some tracker mortgage savers

A significant number of borrowers with tracker mortgages benefiting from historically low interest rates are electing to use the savings to pay off personal debt, a new study has shown.

Unbiased.co.uk found that while 53 per cent are failing to take advantage of the situation by overpaying on their houses, 24 per cent of this group are utilising the money to clear debt elsewhere.

David Elms, the company’s chief executive, indicated that many are missing out by not paying more than they need to when it comes to mortgages, but added: “We’re encouraged by the large number who are using their repayment savings to erode their more costly credit card and personal loan debts.”

Earlier this month, the website warned that British people may not have learned their lesson from the economic downturn with debt levels in the UK almost doubling between the first and second quarters of the year.

By Chris Trimble