With interest rates remaining low and little incentive to save, for the time being at least, the Guardian reported this weekend that more borrowers than ever are overpaying on their mortgage. Experts pointed out that, not only does this reduce the term of the mortgage and the overall amount of interest paid, it can also increase the amount of equity available and give homeowners access to better rates. With a rate rise likely in the next couple of months, and more predicted for later this year, the Independent on Sunday highlighted the potential struggle of interest-only borrowers, and especially those with no repayment vehicle in place. For those on a low income, and rate rise could have a significant impact on household finances, so any inroads that can be made now are crucial.
What the papers say- 9th and 10th March 2011