Mortgagees finding ‘spare cash' for overpayments

Despite the soaring cost of living and escalating household bills, more than one in ten mortgage holders (12 per cent) are planning to make an overpayment on their mortgage over the next six months according to new research from Abbey Mortgages.

The research suggests that paying off the mortgage remains a top financial priority for people and despite a tough economic environment, only a very small number of people are taking a payment holiday (three per cent) and even fewer are planning to free up extra cash and make an underpayment (one per cent).

The Abbey study also found that one in 10 mortgagees will be looking to change their mortgage over the next six months.

Phil Cliff, Director of Abbey Mortgages, comments: "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."

In the South East where mortgage debt is likely to be highest, almost one in five people with a mortgage are planning to make an overpayment (17 per cent). This is more than eight times the number planning to make an underpayment (two per cent).

Eight per cent of people in Wales and the South West are planning to take a payment holiday over the next six months - the most of any region.

Thirteen per cent of mortgagees in the North of England will be shopping around for a new deal over the next six months.

Abbey offers a range of competitive flexible offset mortgages starting at 6.23 per cent with a £1,499 fee. The flexible mortgage comes with a savings pot to allow borrowers to offset savings against the money owed, reducing the interest charged and helping to pay the mortgage off early.