Homeowners advised to overpay on mortgages

31 December 2008

As interest rates fall in the UK, homeowners have been advised by one expert to overpay on their home loans.

Many consumers have benefited from the fall in the base rate of 2.5 per cent over the last month in terms of having reduced monthly repayments.

According to Jane Baker, who made her comments on Fool.co.uk, people on tracker and standard variable rate mortgages can continue to make the same monthly repayments as they had prior to the interest rate falls rather than handing over the new lesser amounts and, in so doing, overpay.

The expert said: "Overpayments allow you to do two things: One, clear your mortgage early. And two, save heaps of interest to boot."

Tags: home loans, loans, loan, mortgage, mortgages

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