Borrowers in the UK are making greater efforts to clear their mortgage debts, according to new reports from mform.co.uk.
It is thought that a growing number of Brits are looking to clear their mortgages and keep up with regular repayments, despite recent base rate increases making mortgages more expensive for many people.
Following the Bank of England’s surprise interest rate increase in January many lenders increased the rates on their tracker mortgage products while some scrapped their fixed rate deals altogether. As a result mortgages are becoming more expensive, exacerbated by relatively high house prices.
Despite these conditions research from mform reveals that mortgage capital repayments have increased by almost 70 per cent between 2001 and 2006.
“These findings are encouraging because although interest repayments are rising people are increasingly trying to pay off the capital they owe on their homes with the aim of becoming mortgage free as quickly as possible,” commented Eamonn Rice, mform chief executive.
Figures from Moneyextra suggest that interest rate increases have led to a decline in mortgage borrowing as affordability pressures continue to impact upon borrowers.
© Adfero Ltd