THINGS TO CONSIDER WITH MORTGAGE OVERPAYMENTS – PROPERTY REPORTER

Nobody likes to pay more than they have to. Yet with rising interest rates and a currently unpredictable economic outlook for the UK, it may be worth considering overpaying on your mortgage, in an attempt to save money by paying less interest in the long run. Here’s what you need to consider.

As well as reducing the amount of interest you pay on your mortgage and clearing your mortgage debt quicker, there are a few other benefits to overpaying on your mortgage:

Making overpayments could save you much more money than you earn from your savings unless the interest rate on your savings account (after tax) is higher than your mortgage rate. In the current low savings interest rate environment, this is unlikely.

The best mortgage deals tend to be available to those with more equity in their property. Using overpayments to increase your equity can, therefore, help you get a better deal when your fixed term ends. Increasing your equity also gets you a step closer to owning your home outright.

Read more: https://www.propertyreporter.co.uk/finance/things-to-consider-with-mortgage-overpayments.html

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