View more on these topics

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.”

Recommended

We need urgent action but not anarchy

As we all saw on our TV screens there were ugly scenes outside the Bank of England last week as angry G20 protestors clashed with police, causing serious disruption and damage in the City of London.

RBSIP opts for drive-by valuations

Royal Bank of Scotland Intermediary Partners is instructing drive-by valuations on remortgages up to 75% LTV in a bid to boost efficiency.

Europe: Nursery slopes

After a flat year for European equities, in which the Artemis European Growth Fund outperformed, manager Philip Wolstencroft is (cautiously) optimistic about 2016.

Newsletter

News and expert analysis straight to your inbox

Sign up