With low rates should I make mortgage overpayments?

Just when we thought interest rates couldn t get any lower, the Bank of England moved to mitigate any potential fallout from Britain’s decision to leave the European Union by cutting them further to 0.25 per cent. Bad news for savers but very definitely good news for the country’s borrowers, particularly those on variable rate or tracker mortgages. Making mortgage overpayments is an option worth considering. But is it a good idea to take advantage of these record low rates? Here are some things to consider: Do you have debts charging higher interest rates? Your mortgage is likely to come with the lowest interest rate of all of your debts. That’s because it is repaid over 25 years – sometimes longer – and the total amount you will repay is large. It’s also secured against your house meaning that the lender has more confidence that it will be repaid. You’re likely to have loans and credit cards charging much higher rates of interest so it always makes more sense to pay off
http://bit.ly/2bUGFjI

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s