HSBC finds mortgage early repayments are most envied

27 October 2004
The latest symbol of wealth and prosperity is the ability to pay off your mortgage early, says HSBC.

A new survey conducted by them found that 70 per cent of those polled said they were impressed by friends who were able to pay back their loan early.

As well as being the new status symbol it also provokes jealousy in those unable to make extra repayments.

In fact, 46 per cent admitted they would be envious of a friend who told them they had freed themselves of the financial burden of a mortgage.

HSBC's head of mortgages Sian Lehrter explained that keeping up with the Jones's now has new dimensions. She said: "It's no longer enough to have the latest car or the coolest gadgets - what people really want is a mortgage-free lifestyle and they are becoming much savvier about how they can achieve it."

In recent years the mortgage industry has seen many changes, with providers now offering shorter-term loans and more flexible payment systems.

In fact, with an offset mortgage - where money in current accounts and savings accounts is taken off the value of the loan - can see mortgage holders pay back their loan years early.

Increased diversification has also allowed the market to open up, resulting in new deals and more competition between providers.

To find out how about offset or flexible mortgages, click here.
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