According to Lloyds TSB, they have seen more than 27,000 customers requesting to overpay their mortgages since the interest rate cut from the Bank of England in November rather than just taking the drop in their monthly mortgage payments.
The article was featured on the BBC website and the BBC said it did contact other lenders to see what figures they had but several other lenders confirmed that they had not collated such figures.
This was interesting to see considering our recent articles since the interest rate cuts stating that people could save thousands of pounds and cut years off their mortgage if they are on a tracker or variable rate mortgage.
The Council of Mortgage Lenders said:
“Now is also a good opportunity for borrowers on interest only mortgages to switch to repayment mortgages to use this period of low interest rates to start to pay down their loans.”
When studying for the CeMAP exam, delegates learn about the different types of mortgages and how mortgage repayments work in the various sorts.