In these ‘money saving’ times, when advice about financial matters is more sought after than ever before and everyone considers all manner of ways to save cash on every expense, it is surprising how few people concentrate on the biggest financial burden they are ever likely to have: their mortgage.
The monthly mortgage payment is often viewed as a ‘given’; it can’t be changed so people continue to let it run as always and in that sense, borrowers are accepting that they’ll probably have the debt for at least 25 years and there’s nothing they can do about it. Of course, this is very far from the truth; one only has to consider the simple act of overpaying the mortgage each month to find a highly suitable way to save large sums over the life of the mortgage.
The benefits to be had from overpaying your mortgage can be so significant that it is often surprising how few borrowers actually do it. With the mortgage being the most long-term financial responsibility an individual will have, anything that cuts the number of years you will have your mortgage for and also decreases the overall amount you will have to pay through saving on the interest payable is obviously a good thing.
Overpaying also increases the amount of equity you have in the property, thus allowing you to access far more competitive mortgage deals when you come to look for new mortgage finance. If you are looking to make any changes in your mortgage Enable Indpendent IFA’s of Bishop Stortford are here to help.
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