Borrowers are being advised to overpay on their mortgage repayments if possible in light of the fact that many lenders no longer have early repayment charges (ERCs).
Experts at Charcolonline.co.uk advise mortgage borrowers to make the most of their ability to overpay in order to pay off their debt quicker.
This, coupled with seeking the best mortgage rates initially, could spell good news for many borrowers worried about the financial burden of purchasing a new home. However consumers are urged to ensure that they are aware of the details of overpayment.
“Most borrowers will have the ability to overpay their mortgage without incurring any ERCs, and some may not be aware of this,” stated Katie Tucker of Charcolonline.co.uk
“Making a single overpayment on a mortgage has a clear benefit in the long term.”
Ms Tucker maintains that the most common amount of overpayment without incurring an ERC is in the region of ten per cent. Figures indicate that as little as £2,500 paid into a mortgage can lead to a mortgage being paid off over a year quicker than otherwise.
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