Offset guide to early repayment
Top of the league in terms of early repayment is Scotland, where the average house price is £71,799. Anyone with industry average savings of £6,219 and taking out a 25 year standard repayment mortgage for 71% (LTV) of the house price, will repay it 39 months early and save £11,667 over the term of the mortgage. This compares with the UK national average of 25 months early.
Commenting on the findings, Grenville Turner, chief executive of Intelligent Finance said: “Publicity surrounding house price figures tends to concentrate on those areas where housing is most expensive, or which have seen the biggest increase. These new figures throw an interesting crosslight on the housing market, and emphasise a most important aspect – how quickly will the loan be discharged? We intend to publish them regularly from now on.”
Those who live in the most expensive area – Greater London – where the average house price is £214,296 – will find, by contrast that they reduce their mortgage term by 15 months on the same basis.