27 Jan

'Many to benefit' from overpaying mortgages

'Many to benefit' from overpaying mortgages

A large number of mortgage holders will benefit from paying over and above the required amount, it has been stated.

Council of Mortgage Lenders spokesperson Bernard Clarke said that there are many people who have had the chance to take advantage of recent Bank of England base rate cuts, as these have led to their mortgage repayments falling.

Noting that this practice can make a "significant difference" to both the amount of interest paid overall and the length of the term, Mr Clarke explained: "Any overpayment should make a difference because almost every mortgage now will be on an interest rate calculation."

However, he cautioned, those who might be in a position to pay extra should first check that there is no clause attached to their mortgage deal that would penalise them for doing this.

Earlier this month Lloyds TSB said that 27,000 customers have asked to make arrangements to overpay on their mortgages since November's base rate cut.

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