Homeowners encouraged to overpay on mortgages

Homeowners in the UK are being encouraged to take advantage of the current low interest rates to overpay on their mortgages.

According to Peter Bolton King, chief executive of the National Association of Estate Agents, those people who can afford to do so will benefit from savings later on.

He commented: "If somebody is able to afford the increased payments, then clearly they have an opportunity for managing to pay back some of the mortgage, which means there will be less owing when rates go back up again."

Mr Bolton King went on to suggest that consumers should look at their overall finances when deciding whether or not to pay more than they need to on their mortgages.

As a result of recent falls in the UK`s base rate of interest, many consumers have seen decreases in their monthly mortgage repayments.

Mr Bolton King pointed out that such low rates will not last indefinitely, stating that they will increase.