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People chose mortgages over appearance

Date: Wed, 20 Apr 2005

Research from online and telephone bank first direct found that three out of four people would choose to sort out their home loans ahead of their appearance.

However, the research also discovered that one person in three had little idea of how to reduce their long-term mortgage commitments despite industry products such as offset mortgages.

One in four respondents suggested that they planned to save up and eventually pay a lump sum off their mortgage, whilst more than a fifth of homeowners would shop around for a better mortgage offer.

"It's remarkable that so many more people would rather be mortgage free than wrinkle free," said Richard Kimber, First Direct's chief executive.

"But it's unlikely to happen if they don't know what action to take to clear their home loan as quickly as possible."

Offset mortgages allow the value of savings to be offset against mortgage commitments and can reduce the amount of payments needed over the lifetime of the mortgage.

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