Consumers using bonuses to ‘pay off’ mortgage
April 13, 2007 by admin
Filed under News, News-Mortgages
Almost one in ten diligent Britons are using their annual bonus to pay off chunks of their mortgage, new research carried out by Birmingham and Midshires shows.
Figures released by the financial provider indicate that Britons are proving to be particularly savvy when using their bonuses, with nearly two-fifths having saved all or most of their bonus over the past year.
With regard to their mortgage, people from the Midlands and Wales are found to be the most financially astute, with nearly two-thirds paying off their mortgage.
In total, Britons collected more than £24 billion in bonuses last year, with the average employee receiving £1,758 from grateful employees, allowing many to invest in other avenues than their mortgage.
While some saved their payouts, over one in ten splashed their hard-earned cash on holidays and electrical items.
Jason Robinson, director of savings operations for Birmingham Midshires, said: “It’s easy to be tempted to splurge when we get paid a bonus so the fact that more than half are using their extra cash sensibly is great news.
“You don’t need a huge amount to save or invest so lucky bonus recipients should try to find a healthy balance between rewarding themselves for a year of hard work and squirreling their cash away,” he added.
