Mortgage holders 'saving rather than paying debt'

Posted: 30 Jan 2012 16:55:01 GMT

Mortgage holders in the UK are missing the chance to pay off what they owe.

Mortgage holders in the UK appear to be missing the opportunity to pay off what they owe by choosing to save rather than settle their debt.

New research from First Direct has shown 42 per cent of those questioned are putting cash to one side on a regular basis, whereas just 21 per cent claimed they regularly overpay on their home loan.

But according to the study, 31 per cent of respondents do not know the interest rate on their agreement, while 43 per cent are unaware of the total cost of their mortgage.

In addition, one-quarter admitted they are unsure whether or not they are able to overpay what they owe.

Richard Tolchard, senior mortgage manager at First Direct - which is a division of HSBC Bank - said: "People continue to try to put some money to one side and mortgage holders are no different in also wanting to pay down their loan."

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