19 May

Mortgage holders encouraged to make overpayments

Mortgage holders encouraged to make overpayments

Mortgage holders have been advised that overpaying on their monthly home loan repayments could be beneficial.

Peter Cowell, a broker at Click n go Mortgages, a firm that provides staff to help with various financial services, said that increasing payments to an affordable level will ensure outstanding "balances will be coming down in line with reduced property prices".

He also suggested that cheap fixed-rate deals may be a good option for borrowers.

"You will be paying a little bit more money now for the next couple of months, but over a time period, the rate that is available now probably won't be available in the future," Mr Cowell explained.

Moneyfacts.co.uk reported earlier this month that the number of new mortgages requiring a deposit of a minimum of 40 per cent has grown by 61 per cent during the last six months.

It also found that the average rate on a 60 per cent loan-to-value mortgage is currently 4.29 per cent.

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