Overpayments on mortgages on the rise
New Research has shown that many people are now willing to pay over their standard monthly mortgage repayment figure and which. has increased by over 50 per cent over the last year
The head of mortgages at The Co-operative Bank, Terry Jordan commented that people who make overpayments will save money in the long run.
He commented further by saying, "It can make real financial sense for customers to make even small monthly overpayments, as these can really add up to a large difference over the lifetime of the mortgage".
“For example, someone with a 25 year mortgage of £100,000 who paid an extra £50 a month could cut the term of their mortgage by 3.2 years,” Mr Jordan states further.
Bilal Afzal, mortgage advisor at Surry Independent Financial Services hinted that the fall in house prices will mean people will have to decrease their mortgage balance to get a better remortgage deal.
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