Homeowners clear mortgage faster

British homeowners are paying off their mortgages faster than they have for the past 25 years, figures out today showed.

Almost a third of homes in Britain are now owned outright, and average age of homeowners making their last mortgage repayment in the first two months of this year was 48, younger than at any time since 1979, researchers at Royal Bank of Scotland (RBS) said.

This compares with an average age of 50 last year and 56 in 2003, the survey found. The last time the average age was below 48 was in 1979, when people had paid off their mortgages by the age of 40.

RBS said the desire to become mortgage-free appeared to be linked to a belief that owning a property outright was the key to financial stability.

Two in five mortgage borrowers said that paying off their mortgage would be the single most important thing they could do to safeguard a long-term sense of security.