Overpay your mortgage - don't save

Chris Wheal
First Direct iPhone app showing offset mortgage balance
First Direct iPhone app showing offset mortgage balance

Twice as many mortgage holders save regularly rather than pay off more of their mortgages, according to new research from online bank First Direct.

A survey of 1022 UK mortgage holders found that 42% are saving regularly - double the proportion that regularly overpay on their mortgage (21%). That is despite overpaying a mortgage being better value than saving.