Homeowners advised to boost mortgage repayments

Posted: 27 Apr 2009 11:50:49 GMT

Property investment professionals with buy-to-let mortgages may find they benefit from overpaying their home loans each month.

All property owners in the financial position to do so could take advantage of the current low interest rate, according to the National Association of Estate Agents (NAEA).

Peter Bolton King, the chief executive of the professional body, suggested that people who do this could ensure their monetary situation is in a better state when the base rate inevitably rises again sometime in the future.

Many experts have predicted that the rate will remain at 0.5 per cent for the majority of 2009.

"If somebody is able to afford the increased payments, then clearly they have an opportunity for managing to pay back some of the mortgage," said the NAEA chief.

His comments follow a recent announcement by the Council of Mortgage Lenders head of research, Bob Pannell, who indicated that there will be "many" UK homeowners who opt to overpay their mortgages while the cost of borrowing stays at 0.5 per cent.


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