All that loose change stashed in pots and hidden under sofa cushions in UK homes could be enough to knock 13 months or more off the average family’s mortgage term.
That is according to the latest research by AA Mortgages, which revealed households found on average £17.26 each month in pockets, jars, pots or even under down the side of the sofa.
The study conducted in a YouGov poll for the AA has been published as the lender launches its new mortgage range, which includes a product in which the minimum overpayment has been slashed from £500 to just £1.
This home loan, the AA said, would make it ‘simple and easy’ for customers to clear their mortgage early.
David Searle, the AA’s director of financial services, said: “In a mortgage market where the focus is too often cast on mind-boggling numbers on record house price sales, for most homeowners it’s about the pounds and pence.
“For many life is getting more expensive which is why so many are looking to make small economies on their monthly commitments, savings that add up.”
The AA’s research found that in total there was £470 million in loose change hidden across the nation’s homes. And while this averaged at £17.26 nationally, it peaked at £26.84 in Yorkshire and £21.79 in the South West.
Meanwhile, the AA also revealed getting a cheaper mortgage deal was the fifth most common money-saving activity amongst Brits. It came behind shopping for cheaper energy suppliers, finding a better home insurance deal and broadband provider and switching supermarkets to save cash on groceries.
It proved more of a priority, however, than changing to a cheaper mobile phone supplier.
David Searle added: “Most homes have a jam jar with loose change and most family sofas give sanctuary to a surprising number of pound coins.
“Giving people the opportunity to put this money against their mortgage can take months or even years off the term. Paying in small regular sums can make a big difference in saved mortgage interest and repayment term.”
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