Financial Times FT.com

Use rate-cut windfalls to pay down loans, say brokers

By Sharlene Goff

Published: November 29 2008 02:00 | Last updated: November 29 2008 02:00

Borrowers with tracker mortgages who have seen their monthly costs fall considerably in recent weeks are being urged to make overpayments while base rates are low.

Around a third of mortgage borrowers have rates that automatically fall when base rates fall. These people have seen their interest costs come down by 2 percentage points since September, which would mean a saving of £250 per month for someone with a £150,000 mortgage.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this