Research commissioned by National Irish Bank has found that most people are failing to take advantage of the current low interest rates to reduce their mortgage more rapidly. Market research carried out for the bank by Irish Marketing Surveys states that homeowners are more likely to reduce their monthly mortgage repayments in line with falls in interest rates than to keep paying the higher amount.

The survey asked respondents whether they had reduced their monthly repayments as interest rates fell. Some 46 per cent of respondents had reduced their repayments, 37 per cent had continued to pay the higher amount and 17 per cent did not know if their repayments had changed.

NIB head of retail financial services, Mr Jim Deeney, said the survey reveals that most people are not considering the option of maintaining the higher monthly repayment amount to reduce the term and cost of their mortgage.

He suggests that an extra repayment of £40 per month could reduce the term of a mortgage by four years and the overall interest cost on a £70,000 25-year mortgage by £10,500.