Borrowers should consider overpaying.

Some financial advisors feel that because borrowing is becoming more difficult there may be problems for people coming to the end of their mortgage deals.

This is because The Bank of England has decided to freeze the base rate of interest at 5.75%

Advisors suggest anyone reaching the end of a fixed rate deal should consider overpaying on their loan. This increased the equity on the home and puts the borrower in a better position to apply for better-value deals.

As well as increasing the equity it will reduce the length of the loan. Most mortgage holders would be allowed to overpay by about 10% without a penalty.

Due to recent developments in the financial markets the number of deals available has been reduced. This has affected both the prime market and the sub-prime market.

Anyone considering making an overpayment would be advised to consult a financial expert as different people have different requirements.

NOTE: Do not make any financial decsions based on the information on this page.
Always take professional mortgage advice first

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