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2.3m borrowers managing to overpay mortgage obligations

Over 2 million borrowers have overpaid on their mortgages since 2005, aided by historically low interest rates, says the Council of Mortgage Lenders.

The CML estimates that between April 2005 and March 2012, 2.3m borrowers paid off more than the contractual amount on their mortgage. Aside from loans which have been paid off in their entirety, this equates to around 34 per cent of mortgages taken out over this period of time.

With the Bank of England’s base rate at the historically low level of 0.5 per cent – where it has remained since March 2009 – borrowers are accumulating greater equity stakes in their property and reducing the impact rate increases will have on their finances.

The fact that a growing proportion of borrowers are paying off their mortgages earlier than expected also offers a greater range of options to borrowers should their financial circumstances deteriorate unexpectedly.

If the current trend continues, the CML predicts the number of outright owners could overtake the number of mortgage borrowers by as soon as 2014.

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Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.