Mortgage borrowers wake up

Intelligent Finance state that mortgage borrowers are finally becoming aware of the benefits of paying off their mortgage early.

An Intelligent Finance mortgage survey that involved around 1,000 people found that three-quarters of borrowers want to reduce their mortgage term or increase their payments to reduce the balance over the remaining mortgage term.

The managing director of Intelligent Finance, Mark Parker, stated: "We now have a new generation of mortgage holders who want more flexibility and the option to pay off their mortgage as soon as possible, rather than go on borrowing into old age."

Intelligent Finance claims a mortgage customer borrowing £250,000 on a 25 year repayment mortgage with a 10% deposit, £10,000 of savings, a monthly salary of £3,000 and £50 a month in additional savings, could save £44,737 in interest and shave more than two years off their mortgage term.