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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.


‘HBOS is a safe harbour’, former chairman told FSA in March 2008

Former HBOS chairman Lord Dennis Stevenson told the FSA it was a “safe harbour” in March 2008, just six months before it nearly collapsed. In a letter to FSA chairman Sir Callum McCarthy dated 18 March 2008, published last Wednesday by the Parliamentary Commission on Banking Standards, Stevenson said HBOS was “robust” and will be […]

Census data reveals drop in home ownership

The number of homes owned with a mortgage dropped 6 per cent between 2001 and 2011, down from 8.4m to 7.6m, according to data from the 2011 census.

RBS Branch 480

RBS set for £350m Libor fine

Royal Bank of Scotland is set for a £350m fine for its role in the Libor rate-rigging scandal.

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

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.


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