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


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