Mortgages Uncovered

The UK’s two largest banks only last week promoted to their customers the benefits of making over payments on their mortgages.

The new promotion comes as many people who hold SVR’s and tracker mortgages are watching their monthly payments drop by a few hundred pounds a month after BofE slashed base rates last October.
Lloyds TSB’s SVR rate has been halved since summer last year and is down to 3.5% by February.

The bank went on to say that it had already received over 27,000 requests from its current mortgage customers to overpay their home loans and is now actively encouraging all its’ customers to follow the same example. HSBC in the meantime, is contacting 30,000 of its mortgage customers to highlight the financial benefits of overpayments.

Stephen Noakes, Cheltenham & Gloucester’s marketing director, said: “Homeowners with a tracker mortgage are hundreds of pounds a month better off. For those who can spare the extra money, making overpayments is a smart move. Not only can it trim years off your mortgage term, but with house prices falling, overpayments will help to protect the equity in your home.”
Martijn van der Heijden, HSBC’s head of mortgages, said: “There is a genuine danger for homeowners in allowing their lifestyles to become accustomed to the current low rates. Interest rates will increase at some point and it will feel painful for those borrowers who have soaked up the benefit of lower mortgage payments by extending their spending habits.”

More mortgage information:
Cheap Dinghy Insurance come and see.
www.hansonconcretegarages.co.uk