Homeowners overpaying their mortgages

Homeowners are overpaying their mortgages to reduce what they owe before their fixed-rate deals end, the Sunday Times reports, after the Bank of England increased the base rate of interest for the sixth month in a row last week. The Bank increased the rate by 0.5 percentage points to 1.75% in an effort to curb inflation. It was at a record low of 0.1% in November last year. The successive rises have led to surging mortgage rates, which have more than tripled since September. In the first six months of this year £10.4bn was overpaid on mortgages, according to the Bank of England. Santander, Britain's third-largest mortgage lender, said 250,000 customers had overpaid a total of £1bn in 2022 so far. 

The Sunday Times (07/08/2022)