Borrowers seek to overpay mortgages

Borrowers are paying off their mortgages before the interest rate goes up again. Nearly £5.1bn was overpaid on home loans in the first three months of this year, while nearly 144,000 borrowers remortgaged over the same period, according to the Bank of England. Last year was a record year for overpayments, with £21.8bn taken off mortgages as homeowners who saved money during the pandemic lockdowns used it to pay down debt. Santander said the amount overpaid between January and April this year was even higher — up 20% on last year to £700m. Graham Sellar, the head of mortgages at Santander, said: “With the cost of living continuing to increase and rate rises more frequent, people are turning their attention to managing their debts.”

The Times