Lloyds' new mortgage overpayment limit provides flexibility, says expert

Posted: 18 Mar 2010 10:18:44 GMT

The recent announcement from Lloyds Banking Group that homeowners will be able to overpay their mortgage by up to 20 per cent without incurring a financial penalty has been welcomed by one expert.

Catherine Hearnden, director at MyMortgageDirect, says: "I think that is very encouraging. It provides a lot of flexibility for people."

"Anything that is going to help people repay mortgages rather than just pay the interest has got to be good."

The scheme is scheduled to run until March 2011 and Ms Hearnden states that it will leave homeowners better prepared for the future if interest rates rise.

Stephen Noakes, commercial director of mortgages at Lloyds, advises with interest rates at a historic low, there has "never been a better time" for people to overpay on their home loans.

Recent statistics from the Bank of England reveal the average cost of a two-year fixed-rate mortgage currently stands at its lowest level since July 2003.

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