Pink advises tracker borrowers to overpay

Pink Home Loans is advising tracker borrowers on low rates to make overpayments rather than put the money into a savings account.

Given the low rate of return offered by savings accounts currently, Pink suggests that borrowers need to understand the options thrown up by savings made on regular repayments.

Neil Hoare, sales and marketing director at Pink, says: “Home owners who have a base rate tracker mortgage will have been lucky enough to have had their monthly payments reduced – quite significantly in some cases.

“Brokers need to ensure that their clients in this position understand what options they have for the money they are saving.”

He adds: “Home owners should be made aware that putting the money into a savings account is not necessarily the best option at the moment with interest rates so low on savings accounts, and that in the longer term they would be better off making overpayments on their mortgage.”