Is it worth over paying your mortgage?
The overpayment of a mortgage may be worth it, especially at a time when interest earned on savings is so low.
Mortgage rates are on the increase but as savings rates are not, any spare cash would work better paying down your mortgage debt. However early repayment penalties and the need for an emergency fund can impact upon the decision and so it is not always straightforward.
If you have an early redemption clause you may be lucky as some lenders allow an annual 10 per cent overpayment without incurring penalties, however it is essential you check your mortgage offer or discuss this point with your lender.
Before making a decision it is advisable to contact 'whole of market' broker Deal Direct, as we can look at cutting the total cost of your mortgage. We can compare the entire UK mortgage market to see if a better deal is achievable.
We maybe able to lower your rate which will reduce the interest you will need to pay back over the term, or we can perhaps shorten the term which combined with a lower rate means you would pay back less over a shorter time.
A review of the market and comparison of the best remortgage deals on offer might alter your decision to over pay, therefore make us your first port of call before taking any action.
For the most competitive mortgage rates on offer contact Deal Direct today.
