Making the most of mortgage overpayments (by Ben Van Laere)

For the first time in history British families are repaying more debt than they’re borrowing . British people were European leaders in taking mortgages but now there has been a reversal.

The Bank of England has announced that for the first time, house owners are paying back more on their mortgages than house owners are borrowing. The reason why debtors are paying their mortgages is the low interest rate. And that’s not the only reason, the number of overpayments has also clearly risen. Overpaying can save thousands of pounds in interest, and can so diminish years off the mortgage.

It is important for people to read the small letters in a mortgage contract. In some mortgages you can overpay as much as you like. In others there are strict rules. The great danger of overpaying is that people are overpaying too much. Once you have made an overpayment, you can’t get that money back.

I found this article very interesting because it contains information about how you can save a lot of money. I never thought of overpaying before, but after reading this article, I think it can be very useful.

Nearly all young families have to borrow from the bank to pay their dream house. Every pound or euro counts for those families, so saving money by overpaying can really be a financial help.

Source: http://www.guardian.co.uk/money/2009/sep/05/overpay-mortgage