Homeowners encouraged to overpay on mortgages

Date:Friday 24th April 2009
Author: Max Freedman

Homeowners in the UK should consider overpaying on their mortgages, according to one industry practitioner.

Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA), said that doing so would reduce their levels of debt.

He commented: "[Overpaying] means there will be less owing when rates go back up again, which they will."

Mr Bolton King added that he does not believe there is anything wrong with people being encouraged to pay more than the statutory minimum on their home loans.

The expert said: "It's an opportunity, they've just got to look at their overall finances".

Currently, the UK's base rate of interest stands at 0.5 per cent, meaning that many mortgage holders have seen a fall in their monthly home loan repayments over recent months.

A professional body for estate agents, the NAEA claims to have around 10,000 members who practice across all aspects of property both in the UK and overseas.