The study conducted by the bank, which is the biggest mortgage lender in the United Kingdom, suggests that more than 63% of mortgage customers are likely to seriously consider overpayment, or increasing their current overpayment, if there is no risk of penalties. In addition, it has been revealed that about one in four consumers questioned have already decided to overpay their mortgage under a new scheme.

Stephen Noakes, the commercial director of mortgages at Lloyds Banking Group , claims that with such remarkable mortgage rates, it’s definitely a high time the majority of consumers overpayed their mortgage.

According to Mr. Noakes, the average mortgage payback has decreased by about £188 per month since rates fell straight down, whereas consumers on base rate tracker mortgages increased their repayments to over £400 a month.

On the one hand, this overpayment scheme is expected to enjoy huge popularity among consumers. On the other hand, Lloyds is in a dire need of getting the maximum mortgage debt.

Moreover, credit rating agency, Moody’s, has recently reported that from January 2011, the UK’s embattled banks will have to start clearing their collective debt that amounts to as much as £319 billion, obtained from the Treasury in 2007 and 2008.

This collective debt is one-quarter of the UK’s entire residential mortgage book, and according to the expectations of Moody’s agency, it would be much harder to obtain a loan from UK banks in 2011.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.