Should You Overpay On Your Mortgage

When you take out a mortgage a big factor is your monthly payments and your affordability, but in some instances you may be able to afford a bit extra and may consider it worthwhile paying back a larger amount of your mortgage.

Your mortgage interest rate is often much higher than your rates on your saving account, so put spare cash into paying off your mortgage can be a very cost effective option. It is important to remember that once you have used your money to repay some of your mortrgage it is very difficult to regain access and will need you to remortgage to release this money in the future, so ensure you leave yourself a bit of a nest egg in your saving account for emergencies or possible increases in your monthly cashflow.

Is There a Cost For Overpaying On Your Mortgage

This will vary from mortgage to mortgage so it is important to read your original mortgage agreement or speak to your mortgage provider before overpaying on your mortgage. Most mortgage deals will allow you to repay up to 10% of your outstanding balance each year before charging any early repayment charges.

If you are making regular mortgage overpayments, because your monthly income has increased, it may be worthwhile considering remortgaging your property and arranging a larger monthly repayment and decreasing the mortgage term, this may well result in a decrease in the total amount repayable over the term depending on your current mortgage agreement and current interest rates.

First Choice Finance are qualified mortgage advisers so are able to help answer your questions on mortgage overpaying as well as a number of other mortgage questions you may have, for more information on how we can help you with your mortgage and remortgage needs please call us on our free phone number 0800 2983000.

First Choice Finance, offers our valued customers reliable service, great rates and the affordable fees possible through its affiliation with nationally recognised lenders. Complete our simple online enquiry form to receive an instant, accurate, no-cost, no-obligation interest rate and closing cost quote.

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First Choice Finance strives to help all prospective borrowers, for questions regarding your eligibility for a home loan or other mortgage products available to less-than-perfect-credit applicants, please contact us on 0800 2983000.

Whether For A First Time Purchase Or A Refinance Of Your Home Loan Or Mortgage. We Can Help You. Even If You Have Bad Credit.

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We use the modern technology available to quickly search and process your loan and mortgage enquiry. By combining the use of the Internet along with advanced processing software we have taken the mystery out of approving and closing a home loan, this said we have no taken human beings out of the process and have highly qualified and experienced underwriters who will help you through the loan / mortgage process.

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Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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