Coronavirus: Brits 'paying off extra' on mortgage payments in lockdown

·2-min read
Combined home insurance premiums are at their highest since 2013, with some home-ownerspaying more. (Breno Assis/Unsplash)
Many Brits are managing to pay back more on their home loans, while others struggle and rely on mortgage holidays. photo: Breno Assis/Unsplash

Millions of Brits have managed to pay back more on their mortgage during the COVID-19 pandemic, research suggests.

Two in five homeowners have paid back an average of £370 ($489) extra, totalling £1754 — up from £1384 previously – on their home loans each month, a study by FirstMortgage found.

More than two in five (44%) Brits said they have been able to make bigger monthly mortgage payments since the UK went into its first national lockdown on 23 March.

However, slightly more admitted they have struggled financially, with 45% taking a mortgage holiday.

A third said they found it easier to save during lockdown, with top reasons being not going to pubs and restaurants (52%), not being able to travel (47%) and no work commutes (35%).

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Homeowners in the north-west are most likely to have saved money in 2020, with 41% saying it was easier to do so in lockdown.

Meanwhile, those in the south-west are most likely to have struggled, with less than a third (29%) finding it easier to save.

The study also found that women are likely to have paid £500 more on their mortgage than men during the pandemic.

Those aged 18 to 24 have benefitted the most this year, with 54% saying they have been able to make higher mortgage payments in lockdown. Meanwhile, 42% 25 to 34-year-olds said the same.

A third of homeowners also said they have been furloughed during the pandemic, with a fifth (21%) of these receiving reduced pay.

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This was higher in the capital, with 31% of London homeowners being furloughed at some point.

It might be surprising to see that many have been overpaying on their mortgage this year, but when you consider the amount of money saved not commuting and with holidays being disrupted many have put the leftover cash to try pay off their mortgage quicker,” said David McGrail at First Mortgage.

“It’s important to keep on top of your finances and repayments, especially during times of uncertainty.

“If you find yourself confused or in a difficult situation, you should consult your mortgage lender or advisor.”

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