Mortgage overpayments for a brighter future

In today's market, there are many features you canbut you should also remember that unused
expect from your mortgage. Often these can makeconcessions from previous years cannot be carried
the facility a more flexible option that allows greaterover - while some concessions will not apply if you
control - and one option you might want to be onrepay in full. Of course, charges may be applicable
the lookout for when shopping for a mortgage is thewhere early repayment fees form part of the terms
ability to overpay.of the mortgage.
Although there are some providers who won't allowOther providers will offer facilities that make their
you repay more than your agreed monthly amountmortgage deals even more flexible. This might include
without incurring a charge, others are happy for youthe ability to take a payment holiday. With this, the
to do so - up to a certain amount. As there arecan take a short break on monthly repayments for
multiple benefits to making overpayments on aanything between one and six months. However,
mortgage, you might want to put this high on yourthey would need to have had the mortgage in place
list of priorities when comparing what is on thefor at least three months before your provider will
market. You might find you want to reduce the termconsider this - and you will need to have made sure
of your mortgage later on - a more viable prospectall previous payments have been on time. Where
when interest rates are low - as this can helpthere is a second charge on the property or loan to
contribute towards a more financially stablevaluation figures exceed the provider's criteria, it
retirement. Some people even set specific targets tomight be that you are not eligible for this feature and
work towards this end and being able to overpayyou should also note interest charges will remain
can help you achieve theses. For example, researchrelevant during this time.
conducted recently by showed 62 per cent of UKChanging your repayment term might also be an
mortgage holders were aiming to have paid theiroption you want to consider if you want to spread it
mortgage completely by the age of 50.out over a longer period of time. This will mean
In many cases, you'll find your provider lets youpaying more interest over the long term, but having
make higher mortgage payments at any time. Youthat level of flexibility might give you the peace of
should be able to pay up to 10 per cent of themind you need.
remaining term as part of a 12-month rolling period,