Homeowner loans customers urged to overpay

Holders of homeowner loans could do well to make overpayments while rates remain low, it has been suggested.

Peter Cowell, a spokesperson for Click n go Mortgages, noted that interest rates are reduced at the moment for many property owners.

He recommended that they take advantage of this situation, remarking: “What people should do is try and make overpayments to a level they can afford, so that their balances will be coming down in line with reduced property prices.”

In addition, he advised mortgage seekers to opt for a fixed-rate deal, in order to set repayments for the next few years.

While rates are low at present, it is likely that they will rise again in the future, Mr Cowell explained.

Meanwhile, Moneyfacts has revealed that homeowners who took out a fixed-rate deal in April or May of 2007 are set to see repayments increase by as much as £600 a month when their current agreement ends.

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