A mortgage is one of the most significant financial commitments many people will ever make. If you are lucky enough to be in a position to consider making overpayments, this can be an appealing option, but there are some things to think about before you do.
The case for early repayment If you can afford to make extra payments, overpaying your mortgage will mean you pay less interest overall. It will also mean you can finish repaying sooner.
Is overpaying right for You? This depends on your circumstances. First, you should consider any other debts you have, as well as your pension, savings, and mortgage type. Credit cards and other loans generally charge a higher rate of interest than a mortgage. It is therefore important to pay these off first. Make sure you have a cash buffer for emergencies, don’t overpay without this in place.
🚨 Data accurate as of the date of publication – 27.11.2024
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q4 2024
