It has been claimed recently that many homeowners with mortgages in the UK will be able to benefit from paying their mortgage loans off far earlier than the scheduled repayment date thanks to the historically low base rate, which has stood at o.5 percent for some months.
The record low interest rate has resulted in repayments falling to historic lows, and this has enabled many homeowners to overpay on their mortgages, giving them a chance to clear them years earlier than scheduled and save thousands of pounds in interest.
According to recently released figures around one in ten homeowners are now able to pay off their mortgage loans earlier than expected as a result of the record low base interest rate.
The research was carried out by First Direct, and showed that around 25 percent of all UK homeowners are now likely to repay their mortgage loans within the next ten years, and if current trends continue this figure could increase to as much as 35 percent.
The results of the study also showed that there had been a reduction in the time between purchasing a property to outright owning the property, with the time period dropping by two years over the past decade.
This again supports the evidence that people have started repaying their mortgage loans faster, enabling them to shift the burden of mortgage debt far more quickly than they may have anticipated.
One official from First Direct stated: “The aspiration to reach freedom day as early as possible has never been stronger. For many, a mortgage represents the biggest debt they will ever have – the typical householder will have five mortgages over their lifetime, which is a massive commitment. By making sounds financial decisions and choosing a flexible mortgage such as an offset, freedom can be closer than ever before.”