Co-operative Bank: Mortgage customers making overpayments

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Co-operative Bank: Mortgage customers making overpayments

Wed 25th Feb 2009

The Co-operative Bank has conducted research which reveals that its mortgage customers are increasingly paying more than the specified monthly repayment amount for their mortgages.

According to the bank, 50 per cent of people are paying more than they have to each month, with 80 per cent citing low interest rates on savings accounts as a motivating factor.

Additionally, 37 per cent of the people the Co-operative Bank polled claim they are repaying more of their mortgage so as to take advantage of the currently low base rate.

Terry Jordan, head of mortgages at the Co-operative Bank, said: "Providing their mortgage allows the flexibility to overpay, at the current time it can make real financial sense for customers to make even small monthly overpayments, as these can really add up to a large difference over the lifetime of the mortgage."

Recently, the Co-operative Bank was rated as the best savings account provider in the UK for customer satisfaction by Which? magazine.

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