What is the best mortgage deal? Simple, one that will allow over-payment.

According to Martin Lewis, founder of moneysavingexpert.com, the answer to What is the best mortgage deal? is one that will allow you to make penalty free over-payment.

As saving rates of interest are at lower levels than mortgage rates borrowers should use any extra money to pay down their mortgage. However, before taking any action you must work out if your mortgage deal will allow it.

Overpayment penalties will remove any gain and some lenders will punish those who try to repay their mortgage more quickly. However, some lenders will allow over-payment up to 10 per cent per year.

Over-payment will significantly reduce your long term costs therefore it is a 'no brainer' for those wanting to know what is the best mortgage deal?

It is always worth having a cash emergency fund though because unless you have a flexible mortgage, once an over-payment is made it can't be 'borrowed' back. Therefore, before considering paying off any extra mortgage debt it is worth putting aside 6 months worth of bill payments as this will help cover eventualities such as job loss. If you stop being able to pay your mortgage in the future, over-payment in the past will count for nothing.

When considering what is the best mortgage? always look at mortgage products that will allow over-payment as paying off a lump sum will cut future interest, which then will lead to you being mortgage free far sooner.

As 'whole of market' brokers Deal Direct can get you the most competitive mortgage deal on offer from UK lenders.