What are the benefits of overpaying your mortgage?

If you are able to, are there any benefits to overpaying your mortgage?

Buying a home, or moving to a new one, can be a strain on your finances. However, after the first few months, once you have become accustomed to your new repayments, you may find that you have more disposable income than you imagined. But, what should you do with it?

You could save it, but as interest rates remain so low, it’s not really a savers market. You could buy other things, like a holiday or a car, or you could speak to us here at Deal Direct, and find out about mortgage over payments.

There are three main benefits to making mortgage over payments:

• By paying more capital off, you pay less interest.
• Depending on how much you pay, you could significantly decrease your mortgage term.
• The amount you pay can be flexible.

Some lenders, though, may have an early repayment charge written into their terms and conditions. It is worth checking, therefore, whether the benefits of making overpayments outweigh whatever the charge is. One of Deal Directs’ mortgage advisers can help to clarify this for you.

Changing the amount you overpay, may also be an option too. Again, one of our experts can help you with the details of how to do this. 

When overpaying your mortgage, to find out what your options are exactly, talk to the UK’s mortgage broker of choice, Deal Direct.

Speak to us directly on 0800 048 8828. For an instant online quote, click below.