Archive: Overpaying your mortgage could save you thousands
According to Compare the Market, UK mortgage holders could save thousands by paying as little as £59 a month extra on their mortgage repayments. This would reduce the mortgage term and save a possible £1,842 on interest payments. This was reported on the What Mortgage Website in August*.
The article finds that, by overpaying £59 a month (which is around 10% of the average monthly repayment), this could reduce a mortgage term by approximately one year and four months and therefore save a possible amount of £1,842 on interest.
What this means for Home Owners and Home Buyers
Adam Nanson from Your Mortgage Expert in Salisbury comments:
“When people take out a mortgage, their bank or mortgage broker will generally look at their monthly expenses and let them know how much they can currently afford to pay on their monthly mortgage repayments.
“However, circumstances can change. You may get pay increases, your expenses might change, children may leave home or you might come into a lump sum of money. And, should this happen, it could be a prudent decision to make regular or one off overpayments on the mortgage.”
How Your Mortgage Expert can help
“Whilst it’s a great idea financially to overpay your mortgage, not all lenders or mortgage products allow you to do this. Some, in fact, penalise you should you opt to overpay.
“If overpaying your mortgage is something you are looking to do, then why not speak to an Independent Mortgage Broker like us. We can research all the current mortgage offers and, not only let you know which one is the most suitable for your personal circumstances, but we can also let you know which ones offer the ability to overpay.”
To speak to Adam Nanson about your next mortgage, ring him now on 01722 322683 or complete a contact us form and let him know when he can call you back.
We don’t charge for an initial consultation, so by speaking with us, you won’t be under any obligation. To find out more about our services and how we operate, visit our about us section.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE IF YOU EXCEED THE LENDERS CRITERIA FOR OVERPAYMENTS.
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