Mortgage borrowing reaches ''new high''

Mortgage borrowing in the UK has increased by 550 per cent in ten years according to a new report.

Motley Fool, a financial advice portal, has found that mortgage borrowing is now at a high of £1,078 billion when it was a much lower £165 billion in 1987 and this indicates a rise of 553 per cent if you take into account interest rate growth.

The average UK home price is now over £200,000 for the first time ever and while wages have grown, they have not been able to match the growth of mortgages.

Paying off your mortgage early is a good financial investment during times of low inflation although some lenders do stipulate a minimum amount which you are allowed to overpay by.

Other firms offer flexible mortgages which recalculate your balance daily so that you can pay off extra each month and pay for the entire mortgage much more quickly.


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