Half of homeowners in the UK would prefer to reduce the overall repayment term on their mortgage rather than reduce the amount of monthly payments, according to research from Charcol and MORI.
Alison Cooley, PR manager at Charcol, said: ‘Many borrowers don’t need to trim their monthly repayments, they’re just after a better deal. By continuing to make the same monthly payments, but at a cheaper rate, the long-term savings can easily run into tens of thousands of pounds, and the mortgage can be repaid months or years earlier. Our research shows this is an idea that, when people stop to think about, they understand and like.’
The research surveyed more than 2,000 adults in the UK. Figures were based on someone paying a typical SVR of 5.85% and remortgaging to Northern Rock’s 3.99% fixed rate mortgage to 01/04/04, with a maximum LTV of 75%.