Brits defy crunch to overpay on mortgages

By MoneyhighStreet Staff. Published on August 27, 2008 This post currently has no comments.

Finance
Thousands of homeowners are shrugging off the financial pressure of higher food and energy bills to make overpayments on their mortgages, it has been discovered.

Research conducted by Abbey found that 12 per cent of homeowners are planning to make an overpayment on their home loan over the next six months.

Conversely, just three per cent of people are intending to take a payment holiday in this time, while only one per cent of those quizzed said they were planning to underpay on their home loan to free up extra cash.

Phil Cliff, director of Abbey Mortgages, said: "A large proportion of mortgages offer borrowers flexibility and the research shows that many people are planning to take advantage of these benefits.

"It''s great to see that people are quite rightly prioritising their mortgage payments ahead of other financial commitments - having a smaller mortgage can mean you get a better deal when you remortgage and of course reduces future monthly outgoings."

Homeowners in the south east were found to be most likely to make an overpayment, with 17 per cent saying this figured in their plans.