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More than one in ten homeowners plan to make an overpayment on their mortgage in the coming months.

According to Abbey, this figure is three times more than the number who are planning to take a payment holiday or make underpayments.

The research suggests that paying off the mortgage remains a top financial priority for people and despite a tough economic environment, only 3% of people are taking a payment holiday and only 1% are planning to free up extra cash and make an underpayment.

The Abbey study also found that one in 10 mortgagees will be looking to change their mortgage over the next six months.

In the South East almost one in five people with a mortgage are planning to make an overpayment, while as many as 8% of people in Wales and the South West are planning to take a payment holiday over the next six months.

Phil Cliff, director of Abbey Mortgages, says: "A large proportion of mortgages offer borrowers flexibility and the research shows that many people are planning to take advantage of these benefits. It's great to see that people are quite rightly prioritising their mortgage payments ahead of other financial commitments - having a smaller mortgage can mean you get a better deal when you remortgage and of course reduces future monthly outgoings."

It seems while those who have a mortgage are trying to pay it off, those who do not have a property of their own are deciding not to take on financial burdens. USwitch.com revealed that total mortgage lending and unsecured personal loans have plummeted by £11 billion in a year.

This figure includes secured lending on properties, which with the Abbey statistics, highlights the changing attitudes of homeowners - people want to save, not spend.

The number of unsecured loans issued also dropped by almost 40,000 to only £283 million each quarter over the past year - that decline totals £1.1 billion.

Simeon Linstead, head of personal finance at USwitch.com, says: "In just 12 months, this economic landslide has sent the consumer lending market into disarray. Our research has confirmed that both mortgage lending and unsecured loans are drying up by the day.

“For those with perfect credit records, it's unlikely this will be an issue, but others it could be problematic. In response to this, it seems consumers are turning to credit card providers for extra cash. Whilst it's good news that people can still access extra money if they need it, this is not a sustainable solution for the problem. Ultimately, this has had a huge knock on effect on the housing market.”

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