Mortgage Expert: Small Changes Can Save You Thousands

Harry Goodliffe is a mortgage expert.

Homeowners in the UK can save thousands of pounds by using a simple strategy.

Many people with mortgages do not know about this technique or do not understand how much they can save. Harry Goodliffe says people are often surprised when they learn about the savings.

Harry says that even small overpayments can save a lot of money in interest over the life of the mortgage.

Most lenders allow people with fixed-rate mortgages to pay up to 10% more each year, but most people pay less than that.

Even paying an extra £50 or £100 per month can lead to big savings.

You could pay off your mortgage sooner.

When you make overpayments, lenders often give you the option to reduce your monthly payments or shorten your mortgage term.

Harry says that if you want to reduce your mortgage term, you should keep making the same payments if you have switched to a lower interest rate.

This way, you are not spending more money, but you are paying off your mortgage faster and could be done a few years early.

However, Harry warns that you should always check with your lender to see how much extra you can pay each year.

Lenders are happy for you to make overpayments, but they do not want you to pay too much because they make money from interest. You can usually find out how much you can overpay by checking your mortgage online.

It can mean paying off your mortgage sooner.

Before making overpayments, Harry advises that you should have a financial safety net in case of unexpected expenses or lost income.

Harry says that making overpayments can be very helpful financially, but it is also important to have an emergency fund to cover at least three months of living expenses. Being financially secure is important.

COPYRIGHT DISCLAIMERS

4English does not own the rights to this content. All rights belong to the owner. 4English only uses this content to help users learn English via the app's features. Contact to request the removal of your content: contact@4englishapp.com.

Hörübung

Hörübung