Pandemic divides mortgage holders’ fortunes

Homeowners used their savings to reduce mortgages at a record rate in the final quarter of last year. Nearly £18bn of mortgage debt was repaid in the last three months of 2020, according to analysis of official data by the Equity Release Council. Homeowners made £5.1bn in lump sum payments, the highest figure since 2007. The payments were fuelled by the record level of savings that people have built up during the pandemic, as opportunities to spend dwindled in lockdown. Although overpayments soared, regular loan repayments remained below pre-pandemic levels as some mortgage-holders continued to defer in the face of financial pressures. “Mortgage holders across the nation have been polarised by the experience of the pandemic,” says Jim Boyd, chief executive of the Equity Release Council.

The Times (12/03/2021)    Daily Mail (12/03/2021)

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