19
May
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.
