Should you overpay your mortgage?

Are you considering making mortgage overpayments? Here’s what to consider

If you can afford it, there are many advantages to overpaying your mortgage, such as:

Becoming a step closer to being mortgage-free

Reducing the amount of interest you owe

Lowering your loan-to-value ratio (LTV).

However, before you make overpayments it’s vital to check the following:

Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal.

Do you have other debts that you should settle first?

Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot?

Your home may be repossessed if you do not keep up repayments on your mortgage