Most tracker mortgage borrowers `not making overpayments`

Despite the UK`s current low interest rates, the majority of tracker mortgage borrowers are not making overpayments, it has been found.

Research conducted by Unbiased.co.uk suggests that 56 per cent of such borrowers are not overpaying.

However, 22 per cent have held repayments at the levels they were at prior to the recent round of interest rate reductions.

Currently, the UK`s base rate stands at 0.5 per cent after the decision last month by the Bank of England`s Monetary Policy Committee (MPC) to make a reduction of 50 basis points.

Richard Winder, spokesperson for Unbiased.co.uk, said: "[Making overpayments] would enable millions of borrowers to take years off their mortgage repayment term, or enjoy a greater level of repayment comfort down the line should the recession begin to bite harder."

Unbiased.co.uk also found that 38 per cent of tracker mortgage borrowers are diverting mortgage repayment savings to paying off other debts.