Businesses ''trying to pay off mortgages early'' - commercial mortgages

29 November 2007

Small business owners are trying to pay off their residential mortgages as soon as possible so that they can focus more attention on running their companies, Yorkshire Bank has said.

Over one in five businesses said that this is one of their current aims, though the study makes no mention of firms'' intentions for their commercial mortgages.

Yorkshire Bank has said that offset mortgages could provide borrowers with a way of achieving their goals ahead of time.

"Offset mortgages are becoming increasingly popular for people wanting to pay off their loan as quickly as possible," said Gary Lumby from Yorkshire Bank.

"People running their own businesses tend to be very financially astute and are quick to recognise a good deal that will save them money," Mr Lumby added.

The research comes as the Met Office warns that many businesses are not doing enough to prepare for the effects of climate change.