More people are overpaying on their mortgages in a bid to claw back money from lenders as rates have increased, brokers report.
Anyone on a fixed-rate loan who wants to overpay by more than 10 per cent may be charged an “early repayment fee”, so you need to check with your lender., said thousands of borrowers were “frantically overpaying” their mortgages before they faced higher repayments. They accumulated about £20,000 in credit card debt throughout the pandemic, however, and decided to get their finances in order.
“But looking through the lens of overpaying means that even £10 or £20 a month would equate to tens of thousands of pounds in or mortgage. For the price of a coffee every few days we could be shaving years off our mortgage.” “Our goal is ultimately to reduce the length of our mortgage term by five years so we are mortgage-free by the time our kids go to university, if they choose to. We can’t afford to overpay much now with the cost of childcare, but intend to overpay more and more as our kids get older and reach school age.”