The recent falls in the Bank of England’s base interest rate could mean a saving of thousands of pounds and cut years off mortgages for many people.
As the BoE’s Monetary Policy Committee has consistently cut interest rates this year, which are now at a record low, thousands of people on tracker or variable rate mortgages will have seen their monthly mortgage payments fall as a result.
If these borrowers continue to make the same mortgage payment despite the fall in interest rate, then they will benefit through potentially paying off their mortgage years early.
This has the added benefit of adding additional equity to the person’s home. Mortgage overpayments are a great idea for anyone who does not have a decent pension pot in place too.