What are the Advantages of Overpaying your Mortgage in Leeds?

What are the Advantages of Overpaying your Mortgage in Leeds?

Should I Pay Off My Mortgage Early Or Invest? | MoneymanTV

Overpaying has its perks for a mortgage – but not for all

Whether a First Time Buyer in LeedsHome Mover in Leeds or looking to Remortgage in Leeds, every homeowner ought to know that overpaying, even if it is not by a lot, could make a difference in the amount of interest you pay back over your mortgage term. The sooner you start overpaying, the better the effects of your additional payments.

There have been proposals in the past, that homeowners not being able to afford these extra payments. It could just be that life is getting in the way. Of course, overpaying is the ideal thing to do when you take out a mortgage, although there is always something new and flashy, we’d rather spend the money on.

The problem seems more likely just to be remembering to overpay your mortgage. It is not something we envision comes into your mind too often either, besides maybe when your mortgage term is almost up.

So, if this sounds like you and you are maybe hoping to overpay to retire early perhaps, what should you do? Our recommendation is to set up a standing order that is payable to your lender each month. Set it up to go out on the same day as your regular mortgage payments.

How much you could save by overpaying your mortgage?

For example, say your monthly mortgage payment is £450 per month and goes out on the 2nd of each month. You can afford an extra £85 per month and want to put that towards your mortgage payments. Set up a standing order of £85 to go out to your lender on the 2nd of each month too.

One of the perks of this, is your mortgage payments will then total at £535, and because it is going out as a regular payment, this will feel and later become the norm for you. Another perk is that whereas the receiver controls a direct debit, the payer’s standing orders get owned. Have a financial emergency and do not want it to go out this month? Log into your online banking and cancel the payment.

Whilst it would be a shame to have to stop overpaying, at least you will receive those benefits thus far. Depending on the lender, you may even be allowed to arrange reduced payments or take a “payment holiday” if you have been overpaying for some time. It is essential to check with lenders though you are looking to do this. Otherwise, it could negatively affect your credit report.

Overpaying is a great habit to have, but it is not obligatory. If you do not feel the need to, you do not have to. That said, saving off a year or two of your mortgage term will be something you will benefit from significantly.

Mortgage Advice for First-Time Buyers in Leeds

mortgage guides

What Does Remortgage in Leeds Mean?

Taking a look at what remortgage in Leeds means, what defines a remortgage in Leeds & the reasons that people may remortgage in Leeds.

Do You Need a Deposit to Remortgage in Leeds?

A look at whether or not you need a deposit if you are looking to take out a remortgage in Leeds on your property and what to consider.

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR

© 2023 Leedsmoneyman

Leedsmoneyman, Wizu Workspace, 32 Park Cross Street, Leeds, LS1 2QH.

Moneyman Logo

Moneyman Logo

Moneyman Logo

Ask Your Question

    Moneyman Logo

    Moneyman Logo

    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo