How homeowners are cashing in on historically low interest rates

Published: 19/12/2012

Millions of homeowners are benefitting from the historically low Bank of England base rate of 0.5 per cent by overpaying on their mortgages.

According to recent figures by the Council of Mortgage Lenders (CML), 2.3 million, or 34 per cent of, mortgages between April 2005 and March 2012 have more paid off more than the contractual amount.

Such activity has increased so much that the CML believe that, should the current trend continue, the number of outright property owners may well overtake the number of mortgage borrowers by 2014.

The Bank of England base rate has remained at the historically low rate of 0.5 per cent since March 2009 therefore allowing borrowers to accumulate a greater stake in their property and minimise the impact of possible future mortgage rate rises.

Content correct at time of publication