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Borrowers overpaying mortgageswhile rates are still low

Borrowers are increasingly looking to overpay on their mortgages, according to brokers.

The Bank of England has kept bank rate at a record low of 0.5 per cent for the past 29 months and it is unlikely it will increase for some time.

Emba group sales and marketing director Mike Fitzgerald says: “People are trying to get into a better position before the cold winds blow across Europe and fuel bills rise and interest rates rise. I think everyone realises now that the best mortgage is one that is being paid off quicker and that is what people seem to be doing.”

Everyone realises now that the best mortgage is one that is being paid off quicker

MoneyQuest managing director Simon Jackson says: “We are now seeing people who are overpaying their mortgage so they can remortgage with a smaller loan. Given the current economic conditions, it is a very sensible thing to do.”

Lentune Mortgage Consultancy director Stuart Gregory says: “Three or four years ago, it would not have entered people’s minds but a lot of people now are thinking more about overpaying and making the best of the low rates.”

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