A representative from the Council of Mortgage Lenders (CML) has offered homeowners some debt management advice.
CML spokesperson Bernard Clarke said that making overpayments on a mortgage can have a “significant” influence on the length of the debt and the amount of interest people pay back.
“Any overpayment should make a difference because almost every mortgage now will be on an interest rate calculation,” he commented.
Mr Clarke stated that people who have managed to keep their jobs and do not have high debts may find themselves better off as a result of recent Bank of England base rate cuts, so therefore may choose to pay back higher amounts on their mortgage.
However, he advised homeowners to check that they are not penalised for overpayments under the terms of their loan.
Lloyds TSB recently revealed that since November it had received approximately 27,000 requests from customers looking to set up overpayments.
By Jamie Price